A Heavy Monsoon Season Is Great News for These Indian Stocks

-- 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.

Hindustan Unilever Ltd. — seen as a bellwether for consumer appetite in India as its products are sold in every part of the country — has said it sees demand gradually improving. Rival Dabur India Ltd. has echoed the same sentiment, while motorcycle maker Hero MotoCorp Ltd. has said it sees most of its new vehicle inquiries now coming from rural areas.“We think rural economy is starting to come back,” said Rajeev Agrawal, a fund manager at New-York based DoorDarshi India Fund.

“This is still a hope trade,” said DSP Mutual Fund’s Kapoor. “There hasn’t been a meaningful recovery in earnings or sales volumes so far.” Shares of Mahindra & Mahindra Ltd., which makes farm equipment such as tractors, are up about 17% this month, the top performers on a gauge of 16 Indian automakers. The stock surged 6% on Friday to a record after better-than-expected fourth-quarter earnings, with some analysts citing likely improvement in tractor sales ahead driven by expectation of normal monsoons.

South Africa South Africa Latest News, South Africa South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

A Heavy Monsoon Season Is Great News for These Indian StocksStocks 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.
Source: BNNBloomberg - 🏆 83. / 50 Read more »

Meme stocks GameStop, AMC dip in heavy volumes after two-day rally(Reuters) -Shares of GameStop and AMC slipped in volatile premarket trading on Wednesday, following sharp gains this week after 'Roaring Kitty' Keith Gill...
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

Premarket: Stocks grind toward record highs in inflation-heavy weekU.S. stock futures pointed higher ahead of CPI data on Wednesday
Source: globeandmail - 🏆 5. / 92 Read more »

U.S. stocks gain at top data-heavy week amid suspected yen interventionThe Kitco News Team brings you the latest news, videos, analysis and opinions regarding Precious Metals, Crypto, Mining, World Markets and Global Economy.
Source: KitcoNewsNOW - 🏆 13. / 78 Read more »

Foreigners Sell Indian Stocks on Election Risks, China AppealIndian stocks are set for the biggest monthly outflow in nearly a year as election uncertainties and high valuations prompt some funds to shift to cheaper alternatives like Chinese equities.
Source: BNNBloomberg - 🏆 83. / 50 Read more »

AI-Led Tech Craze Leaves Mega Indian Software Stocks in the Dust(Bloomberg) -- Shares of India’s vaunted IT outsourcing firms are facing a reality check, as global investors’ rush into the artificial intelligence theme...
Source: YahooFinanceCA - 🏆 47. / 63 Read more »