A Heavy Monsoon Season Is Great News For These Indian Stocks
NDTV
Sales volumes in rural areas are improving and several major consumer goods firms have predicted stronger business ahead.
Stocks of Indian firms that earn a large chunk of their revenues from the nation's hinterland are showing signs of a revival, as traders bet that bountiful monsoon rains will lead to better crop yields and boost rural demand.
Motorcycle manufacturers, farm-equipment makers and producers of fast-moving consumer goods have rallied following forecasts of timely and above-normal monsoon rains in 2024, after extreme and unseasonal heat wreaked havoc on Indian agriculture in the last two years. Sales volumes in rural areas are improving and several major consumer goods firms have predicted stronger business ahead.
The Nifty FMCG Index has risen 1.5% so far in May, beating the benchmark NSE Nifty 50 Index by more than two percentage points. It underperformed in each of the previous six months.
