Published Paper Details:

This study examines the relationship between macroeconomic indicators and shareholder wealth creation in Indian consumption companies, with a focus on understanding whether macroeconomic cycles translate uniformly into firm-level financial performance. The research analyses a set of six representative companies spanning different consumption sub-segments, including aspirational discretionary, cyclical retail, value-oriented retail, and fast-moving consumer goods (FMCG). Key macroeconomic indicators such as foreign portfolio investment (FPI) flows, foreign direct investment (FDI) flows, capacity utilisation, and consumption indices are evaluated alongside company-specific metrics including share price performance, Return on Equity (ROE), and Return on Capital Employed (ROCE). The methodology adopts a descriptive and comparative approach, combining visual trend analysis with firm-level financial evaluation to identify patterns between macroeconomic movements and shareholder outcomes. The findings suggest that while macroeconomic indicators influence short-term performance and market sentiment, they do not independently determine long-term wealth creation. Instead, business model characteristics--such as pricing power, capital efficiency, and operating leverage--play a more significant role in shaping sustained returns. The study highlights that discretionary businesses exhibit higher sensitivity to economic cycles, while FMCG and value-oriented companies demonstrate resilience across phases. Overall, the research reinforces the importance of integrating macroeconomic analysis with firm-level fundamentals, providing insights relevant for equity research, portfolio construction, and investment decision-making in the Indian consumption sector.