INSUBCONTINENT EXCLUSIVE:
The Met department's forecast of a normal monsoon this year has come as manna from heaven for farmers as well as the government
From the market viewpoint, a normal monsoon is seen as a feel-good
many sectors are linked to how it pans out across the country
In its first-stage forecast on Monday, the Indian Meteorological Department (IMD) talked about a normal South-West monsoon for
If it does come true, this will be the third straight year of normal rainfall.
The prediction matches private player Skymet's forecast too,
suggesting that rains won't let India down this time around
The monsoon is expected in Kerala between May-end or June first week and is likely to cover the country in the next 45 days.
Global
brokerage firm CLSA expects wages to pick up as a normal monsoon aids rural recovery
We drew up a list of stocks that may make a splash if rains follow the script.
Mahindra MahindraCLSA raised its target price for Mahindra
Mahindra (MM) to Rs 960, from Rs 910 earlier
The global brokerage firm added that rural demand outlook has improved with the normal monsoon forecast
benefit from a normal monsoon
Already, the stock is a stellar performer and a lot of wealth has been created in the past
We believe that a lot of steam is still left in the company
agricultural tractors and construction equipment.
Chambal Fert, Rallis India, UPLSanjiv Bhasin of IIFL is upbeat on fertiliser and
agrochemical stocks such as Chambal Fertilisers, Rallis India and UPL
Other market experts also noted that dealers have so far kept inventory of fertilisers and pesticides low, which should support volume
Chambal Fertilisers offers urea and di-ammonium phosphate (DAP) whereas UPL provides crop protection solutions
Rallis India is engaged in the business of manufacturing and marketing of agri inputs.
Nagarjuna Fertilizers and ChemicalsG Chokkalingam,
founder, Equinomics Research and Advisory, expects that Nagarjuna Fertilizers as well as Mahindra Mahindra would get a leg-up from normal
The company is engaged in the manufacturing and sale of urea.
ITC, PNB Housing Finance, Godrej Agrovet and Hero MotoCorpSanjeev Jain, AVP,
Ashika Stock Broking, is swearing by two-wheeler maker Hero MotoCorp, ITC from FMCG, NBFC firm PNB Housing Finance and agribusiness player
He believes that consumption demand as well as discretionary spendings will get a push if monsoon stays on its predicted path.
