Rural Demand Will Increase by Good Monsoon, Returns up to 46% in 6 Shares
On
May 29, after the monsoon knock in Kerala, there was a stir in many stocks in
the stock market. Stocks associated with monsoon, such as FMCG, rural and
agri sectors and some auto companies, saw steady growth. Experts say that
the latest update of the monsoon has given rise to the hope of a rally in the
stock market. They say that good monsoon increases the purchasing power in
rural areas, which has a positive impact on the business of many companies
related to FMCG, auto, consumer-durable, NBFC and rural and agri
companies.
The monsoon will cover the whole country
soon after the monsoon
hit
Kerala 3 days ago, with the weather department again speaking about the normal
monsoon in the country. According to the Meteorological Department, in
June, 80 percent of the country's parts will cover 100 percent of the monsoon
in the first week of July. The Meteorological Department has expressed the
hope of 97% rain this year. Knowledgeable people are saying this better
than the country's economy.
According
to Jagdish Thakkar, Director of Fortune Fiscal, Monsoon Relation from the
Stock Market , the country's economy is largely dependent on
the monsoon. At the same time, there is a strong relation between the
monsoon and the performance of many companies in terms of stock
market. Good monsoon means that the performance of those companies can be
better, which is beneficial to the stock market. The Meteorological
Department estimates that this time the monsoon will normally be distributed in
different parts of the country. It means that good farming will increase
the income of the farmers and those living in rural areas. Increasing
income of the rural areas will increase their purchasing power, which will
increase the demand story again.
Rural sector benefit stocks associated
with
said
director Ajay Kedia of Kedia Commodities that are positive sentiment for the
agricultural sector before the monsoon in Kerala. Seeds, fertilizer,
agricultural equipment, pump systems, tractor demand increases In such a
situation, the shares of ULL, Coromandel International, Chambal Fertilizer,
Deepak Fertilizer and RCF can be seen rapidly. Increased form production,
packaged food companies get Raw Material cheap. It can be exploited by
Britannia, Nestle and GSK Consumers.
Advantage of NBFC, FMCG and Auto Shares
Sandeep
Jain, Research Head of Trade Swift, says that if the income of the rural areas
increases, then the expenditure in the rural areas increases on the items used
in the everyday life. At the same time, the demand for vehicle from the
rural areas is even faster. The two-wheeler companies, in particular, have
the advantage. While there is an increase in auto loan demand, NBFC companies
are expected to benefit. According to the brokerage house Motilal Oswal,
shares of companies such as HUL, Colgate, Dabur and Emami could come up with
better monsoon.
