Local equities are likely to be under pressure amid the bearish trend in global markets. However, midcap firms’ resilient earnings growth, despite lacking major positive surprises, is expected to support retail investor sentiment. Consumption stocks still facing headwinds The much-awaited recovery in urban consumption may take longer to emerge, according to analysts at Antique Stock Broking. Insights gathered from distributors and dealers across various regions indicate that demand in the urban general trade segment remained under pressure through April. Analysts note that food categories witnessed stronger growth as compared to home and personal care products. While midcap shares may have lagged their larger peers in the recent rally, their earnings growth paints a stronger picture. Companies in the NSE Nifty Midcap 150 Index posted a 21.4% profit increase in the fourth quarter, outpacing the 4.3% increase reported by Nifty 50 firms. Forecasts for the midcap index have been raised by over 13% this year, while estimates for the Nifty 50 have remained unchanged, according to data compiled by Bloomberg.