HUL, ITC, Hero , Bajaj Auto among 8 stocks in FMCG and Auto space to gain focus amidst above normal monsoon forecasts
Also Read- Multibagger Stock: KPI Green Energy zoomed over 200% in less than six months, advanced 510% in a year “The forecast of above normal monsoon augurs well for the economy and stock markets. This will enable a 7 % GDP growth for FY 25 with corporate earnings growth of around 14 %" said *V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services. The Good monsoon will lift the rural economy and improvement in rural income will boost demand for consumer staples, which, in turn, will boost the bottom line of FMCG companies, added Vijayakumar.
Deepak Jasani, Head of Research at HDFC Securities also said that the normal monsoon predictions are positive and have now been discounted by the markets. It is the worries of geopolitical front that are adding to Risk off sentiments around the world and will weigh on indices. However gains seen in FMCG index and autos may have been supported by normal monsoon predictions, said Jasani Nevertheless these are still early days and all eyes will be on progress of monsoon.
The timing, distribution of monsoon also play an important role in pick up of agriculture activities. Sectors and stocks to watch for - Automobile Sector- The Tractor sales and entry level two wheeler and even entry level passenger vehicle sales have suffered significantly during FY24 amidst weak demand. The recovery in rural economy and the pickup in monsoon activities thereby can lift sales of tractors and two wheelers respectively.
Two segments that will benefit are two-wheelers and tractors, said Vijayakumar. Hero MotoCorp , TVS Motor Company , Bajaj Auto and Mahindra & Mahindra are the stocks to watch for as per him. Also Read- Top Stock Recommendations: Sagar Doshi of Nuvama suggests Aarti Ind,
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