Consumer stocks remain costly despite correction; Bajaj Auto, Maruti fall

Makers of big-ticket goods have seen heavy selling

A sharp four per cent fall in the share price of Hero MotoCorp – the country’s largest two-wheeler maker – on Monday has rekindled fears of a further downslide in consumer stocks. 

Consumer stocks, especially the makers of big-ticket goods such as two-wheelers, passenger car makers and home appliances have seen heavy selling in the last six months. 

This is because investors are worried about demand slowdown amid liquidity crunch for non-bank lenders and a general slump in consumption.

The combined market capitalisation of companies, such as Hero MotoCorp, Maruti Suzuki, Bajaj Auto and Havells India, is down 17.2 per cent year-to-date in