Luxury goods witnessing strong demand

New Delhi: Domestic economy is witnessing a clear demarcation with premium and luxury goods witnessing strong demand, while basic demand being hit due to high inflation, says Amnish Aggarwal, the head of research at Prabhudas Lilladher.

“We believe all eyes rest on festive demand in the coming couple of months for the market to sustain momentum. 2Q24 will show the impact of volatile monsoons, flash floods in July and delayed recovery in rural and consumer demand in a few segments,” the research said.

“Demand scenario is mixed with strong demand from upper and upper middle class while lower class seems to be under some pressure.”

Volatile weather conditions and higher food inflation during the quarter has also impacted the sentiments. Discretionary spending on travel, tourism, Jewellery has been good while QSR, apparel, 2W have been impacted. PV continue to report strong numbers, the report said.