New Delhi, May 19 The Indian Metrology Department has predicted an 'above normal' monsoon for 2024.
A good monsoon always gives a boost to the stock market, because it revives demand for consumer goods, vehicles, and farm equipment.
The Nifty FMCG index has risen over 1.5 per cent so far in May and outperformed the benchmark Nifty 50 by nearly two per cent. This showcases market sentiment for FMCG sectors.
FMCG company Marico's shares were up by 17.95 per cent last month.
After the fourth quarter results, Marico had said in its guidance that rural demand is improving and the growth in revenue from domestic business can be in double digits in the current financial year.
Hindustan Unilever's stock was up by 4.5 per cent last month. The company had said in its commentary after the results that there is an improvement in demand.
The Reserve Bank of India had also said in its April monetary policy that rural demand is returning in the economy.
The shares of auto company Hero MotoCorp were up by 21 per cent last month. The company had said that more inquiries regarding new vehicles are coming from rural areas.
Mahindra & Mahindra's shares were up by 20 per cent last month. Due to good results of the fourth quarter, the stock had increased by more than 6 per cent last Friday.
Shares of Tractor market Escorts Kubota were up by 25 per cent return last month.
According to data from the Federation of Automobile Dealers Associations, sales of two-wheelers in India rose 33 per cent in April on a YoY basis.
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