A good monsoon will likely bring a bumper harvest that will ease supply-side constraints and will also help in curbing inflation. According to share market experts, various segments of equities related to agriculture and rural spending are expected to see huge growth in the monsoon season. Here is the list of Best Rainy Season Stocks to Buy in India
Monsoon Season 2021
The Indian Meteorological Department (IMD) recently said the southwest monsoon rain is expected to be normal this year. The southwest monsoon plays a significant role in India’s agriculture, accounting for 70-75% of the annual rainfall. The agriculture sector contributes around 15-17 percent to the GDP but directly or indirectly, it accounts for 55-60 percent of jobs, which has a significant impact on the demand outlook.
The monsoon clouds and D-Street movement complement each other. The focus, however, is on how the monsoon will impact some sectors and it is important for investors to have the right strategy taking into account the coronavirus pandemic as well. As a good monsoon is directly proportional to uplifting rural spending, many industries are likely to see a rise in demand for products as well as services.
With this upcoming monsoon season, tractors, two-wheelers, auto, rural financing, agrochemical, and selected FMCG companies are likely to benefits.
Best Rainy Season Stocks to Buy in India
The forecast of a normal monsoon, the lifeblood of Indian agriculture, has been supporting the market. Various segments of equities are expected to grow drastically near the monsoon season. Here are some expectations from this monsoon season.
The fertilizer companies, whose sales usually soar amid a rise in demand from the rural arise. These companies are indicating higher sales activities.
Stocks- Coromandel International, National fertilizer, and Bayer Crop Science, etc.
With the improvement in rural sentiment, sales of two-wheelers and low-cost three, as well as four-wheelers, are expected to improve. Even tractor sales are expected to increase.
Stocks- Escorts, M&M, Hero MotoCorp and TVS Motors, etc.
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One of the economical industries would be the FMCG, as a higher purchasing power of rural Indians will increase the demand for their products. This is likely to increase financial performance as the rise in margins and net sales gradually improve.
Stocks- Colgate Palmolive, Dabur India, and Hindustan Unilever. etc.
List of 12 Best Rainy Season Stocks to Buy in India 2021
| Company | CMP | Target |
|---|---|---|
| Coromandel International | 886.00 | 950-1000 |
| Dhanuka Agritech | 1001.10 | 1200 |
| Escorts | 1200.75 | 1355-1390 |
| Kaveri Seed Company | 721.00 | 770-800 |
| National Fertilizers | 63.20 | 79 |
| Hindustan Unilever | 2444.15 | 2580-2700 |
| Mahindra & Mahindra | 772.85 | 1000-1039 |
| Hero MotoCorp | 2898.20 | 3345 |
| Bayer Crop Science | 5640.50 | 6500 |
| Marico | 531.65 | 550-580 |
| Dabur | 593.15 | 665-700 |
| Godrej Agrovet | 656.30 | 720-750 |
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Disclaimer: The information contained in the above article are solely for informational purpose after exercising due care. However, it does not constitute professional advice or a formal recommendation. The author does not own any responsibility for any loss or damage caused to any person, directly or indirectly, for any action taken on the basis of the above article.
Shares/Mutual Funds on my blog are provided for educational purposes only and do not constitute specific financial, trading, or investment advice. Please consult your financial adviser before taking any position in the stock/s mentioned.
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