Indian economy is essentially an agrarian economy, which means that the primary source of earnings for a majority of the country’s population is the agricultural sector. The agricultural sector subsequently, depends largely on the weather. India’s industrial sector which forms the secondary sector required most of its raw material from farms and needs agriculture for its sustenance.
This is the reason why India has invested a great deal for the welfare of farmers and for ensuring that they thrive and subsequently the economy thrives. India’s agricultural pattern is highly dependent on monsoons and rainfall as the primary source of irrigation. The cropping patterns are rotated according to the monsoon.
India’s tropical location ensures that the country has ample rains for four month in a year. However, any excess or deficit in this has a chain reaction on the economy. The 2020 monsoon prediction says that the country will have normal rainfall, which has boosted the sentiment for the industries which depend on monsoons, such as the FMCG companies, F&B, fertilizer companies etc.
As an investor, if you are planning to take benefit out of this annual event of the business cycles, then beginning of June is the best time to invest in the stocks of these companies which are likely to benefit from a normal monsoon.
We at CapitalVia Global Research Limited- Investment Advisor have the most suited solution and investment strategy for you, if you are planning to buy quality stocks ahead of monsoons. We have launched the Monsoon Neuron for 2020, which is a portfolio of stocks which have been chosen specially to cash in on the impact of monsoon on the economy and the stock markets.
So if you are wondering as to how does the rainy season affect stock markets, then subscribing to the Monsoon Market Neuron report might give you all answers you need.
There are five major reasons why investing in stock markets with the help of monsoon market neuron report will be beneficial for you.
1. There is a Rise in Demand for Consumer Product
2. You are not Exposed to a Very High Risk
3. Monsoon is a Blessing in Disguise for Fertilizer and Chemical Companies
4. Fundamental Analysis Pays off in Long Term
5. CapitalVia is a SEBI Registered and Unbiased Research House
Monsoon always indicates to a rise in demand for household products in urban as well as rural areas. It has been seen that during the monsoon seasons, people often end up spending more, especially in rural areas where the monsoon season also implies earning season. This helps in companies making household items get higher sales and leads to a higher demand. As a result, the stocks of companies in the FMCG sector are expected to perform well. The Monsoon Neuron report will help you understand exactly which stocks should be picked from this category and why.
The Monsoon Neuron report released by CapitalVia Global Research Limited is among its least risk carrying products, which means that it is ideal for people who are unwilling to take high risks in the stock markets. Also, being a long term holding subscription, the overall risk also reduces. The capital required to be invested in the markets is also a minimum sum of Rs. 50,000, which is not a huge amount for an investor to put in the stock markets.
We all know that every year in monsoon, there comes a menace of insects, rodents, lizards, etc. which are harmful for everyone. Especially with the recent pandemic, everyone wants to keep their houses clean for which chemical products are needed. Also, in rural areas, farmers need t use fertilizers, insecticides and pesticides to keep their crops safe from the menace of insects, pests, rodents etc. This directly has an impact on the fertilizer and chemical companies, whose sales shoot up during the monsoon season. The Monsoon neuron report will be able to pick the exact stock for you which is poised to soar with the onset of monsoon in different parts of India.
The Monsoon Neuron market report is based on fundamental analysis, which helps investors who want to stay invested in the markets for a long time, make the decision on the basis of the company’s value. Also, the explanation and rationale given for the picking of stocks in the Monsoon Neuron report can be used as a educational material to understand how a company or a stock can be analyzed fundamentally and what are the major factors to check in a stock while including it in a portfolio on fundamental grounds.
While investing on an advice given by anyone apart from yourself, it is important to understand the intention, method and neutrality of the advisor. Hence, if you are planning on investing in the stocks in the Monsoon Neuron, it is important for you understand that CapitalVia Global Research Limited is a SEBI registered investment advisor and we give scientifically researched, unbiased recommendations to our clients. We are a pure play research house and only charge fees for our advice without handling client’s investment capital.
CONCLUSION:
Timing in the stock market investment is extremely crucial and hence, if you are planning to put your money in the stocks which will benefit from the monsoons, Beginning of June is the best time to invest so that you take full advantage of the rally in the prices of the stocks.
However, it should be always considered that investments in stock markets are subject to risk and a person should always invest according to his risk appetite in the markets.
Pioneer in Investment Advisor
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