Despite fears of a weaker monsoon, Nomura’s Mihir Shah anticipates muted impact on rural demand due to healthy reservoir levels and improved irrigation. El NiƱo’s influence is expected to be limited until later in the season, with potential offsetting factors. Urban demand is showing signs of a pickup, narrowing the rural-urban gap. ITC faces near-term challenges from tax hikes, while Asian Paints remains a top pick.
