Investment to be benefited from Building a New India
The stock market usually reacts positively to normal monsoon as it’s a sentiment booster. Though dependency on monsoon has fallen over the decades, a normal monsoon is good news for the entire economy as it leads to increased farm production and increased demand from rural areas.
You also need to factor in the upcoming elections and increased spending in rural areas by the government as well as the political parties. This spending combined with a good monsoon will have a bigger impact on the rural economy.
The positive impact of normal monsoon on the country’s fiscal situation will also prop up market sentiments.“The Prime Minister has talked about the need to support agriculture. Worries about rising inflation and resultant interest rate hikes by the RBI will also abate due to a good monsoon. Though there might be a small spike in inflation in the coming months—till June due to unfavourable base effect—inflation is expected to come down in the later part of the year due to a good monsoon.
Industries that are directly related to agriculture—fertiliser, pesticide, seed, etc.—stand to benefit the most.Tractor companies and those with large exposure to tractorswill also benefit from the monsoon-driven growth in the rural economy.
Increased farm production and higher disposable income will have a positive impact for all retail-consumer-oriented industries. Since most fast-moving consumer goods (FMCG) companies get a majority of their revenue from rural India, increased rural income will boost their growth. “FMCG companies such as will also benefit from the reduced input costs (due to increased farm production)
Accordingly, we made this Neuron considering above mentioned factors and we picked industries which gets affected directly from the monsoon and has a future potential to grow ahead in the market and has a potential to generate handsome return from the market during monsoon 2019.Stocks are shortlisted considering the fundamentals of the company and has a potential to generate handsome return from the market during monsoon 2019.
Data is updated on 7th per month. It gets verified every quarter by independent auditor.
Data presented here is taken from company's inception
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