New Delhi, June 30 -- Driven by increased distribution of freebies and a positive sentiment from good monsoon, rural market in India's fast-moving consumer goods (FMCG) sector continues to outperform urban areas, according to a recent report by Nuvama Institutional Equities.

The report stated that rural markets continued to outpace urban areas in the overall FMCG sector. It noted that rural demand is already doing well and remains strong, while urban markets are facing pressure and are likely to stay under strain until the first half of FY26.

However, urban demand is expected to start improving from the second half of FY26, the report stated.

In terms of volume growth, rural regions have shown remarkable performance. For the fourth con...