Deutsche Bank recommends being selective in Indian consumer goods stocks as high inflation and weak job creation may weigh on the sector, even as the broader growth outlook and investment arguments remain compelling.

Deutsche says it prefers companies with "multiple levers to manage growth," favouring those with strong pricing power, ability to expand distribution, and with a track record of innovation to maneuver a potential slowdown.

As a result, the investment bank recommends ITC (ITC.NS) , Marico (MRCO.NS) and Titan Industries (TITN.NS) as its top 'buy' stocks in the consumer goods space.

However, Deutsche downgrades Nestle India (NEST.NS) to 'sell' from 'hold', citing a combination of market slowdown and "missteps" by management.

Deutsche also downgrades Dabur India to 'sell' from 'hold', citing expectations for poor volume and earnings growth.