New Delhi, Aug 31 (IANS): Consumer stocks are taking a hit on Thursday as monsoon worries mount.

Nestle is the top loser in BSE Sensex, down 2.2 per cent at Rs 21,706. ITC, HUL, Asian Paints are also trading down.

BSE Sensex is down 140 points at 64946 points.

Among the other FMCG companies, Tata Consumer and Britannia are down 1 per cent each.

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said presently, the probability of a deficient monsoon is high. This will impact GDP growth and keep inflation elevated. The impact on the FMCG sector will be high.

Investors may consider tweaking their portfolio with higher weightage for more inflation-proof segments like pharmaceuticals and export oriented sectors like IT, he said.

The declining bond yields in the US has turned the global market construct favourable for equities. But this is unlikely to create a highly favourable environment in the Indian market since the poor monsoon is becoming a major worry, he said.

Unless the rains revive soon, the economy and markets will come under a cloud. It is important to remember that the RBI’s projection of FY24 inflation at 5.4 per cent is based on a normal monsoon, he said.