BUSINESS

The monsoon forecast was “above normal,” which sent these equities surging

For 2024, the Indian Metrology Department has forecasted a monsoon that is “above normal.”

The stock market always benefits from a strong monsoon because it increases demand for automobiles, agricultural equipment, and consumer items.

In May, the Nifty FMCG index has gained more than 1.5%, outperforming the benchmark Nifty 50 by over 2%. This illustrates the mood of the FMCG markets.

The shares of FMCG manufacturer Marico had a 17.95% increase last month.

Following the release of the fourth quarter results, Marico provided guidance indicating that rural demand is rising and that the upcoming fiscal year might see double-digit increase in domestic company revenue.

The shares of Hindustan Unilever increased by 4.5% in the previous month. The business has noted that demand is improving in its post-results remark.

Additionally, the Reserve Bank of India said that rural demand is growing again in the economy in its April monetary policy.

Hero MotoCorp’s stock increased by 21% in the previous month. According to the corporation, more people in rural regions are enquiring about new cars.

The shares of Mahindra & Mahindra saw a 20% increase last month. Last Friday saw a more than 6% surge in the stock due to the fourth quarter’s strong performance.

Last month, Tractor Market Escorts Kubota’s shares had a 25% gain.

The Federation of Automobile Dealers Associations reported that two-wheeler sales in India increased 33% YoY in April.

 

Related Articles

Check Also
Close
Back to top button