Stock Market: What sectors will benefit from monsoon 2024?

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inflation.As we know, India is an agricultural economy. The country has a unique competitive advantage with the largest arable land area and is the second-largest wheat and rice producer. Most farmers still depend on the monsoon rain to cultivate food.

If the monsoon rainfall remains normal, as predicted by the IMD, then the supply of all agricultural goods will not get hammered. However, if the rainfall is low, it may impact crop cultivation and supply.The majority of India's rural population is employed in the agriculture sector, which contributes a big part to the growth of the country's GDP. Market participants actively track the monsoon rainfall to find opportunities in the stock market.The monsoon directly impacts the FMCG sector.

The above-normal monsoon will maintain the supply of food, satisfying consumer demand. Food inflation will also remain low, and the profitability of FMCG companies will be on a steady rise.Automobile companies involved in tractor manufacturing also play a big role in agriculture. Tractors are one of the most used vehicles for crop production, so normal rainfall is likely to increase automobile company sales.The above-normal monsoons will also increase rural income and help boost the country's rural demand.IMD predictions support that 2024 will be a good year for farmers.

If the predictions were up to the mark, Indian stock markets may rise higher. Sectors such as FMCG, chemicals, and automobiles may perform well. The demand for agricultural goods will eventually increase, and the profitability of the companies will rise.The government's focus on improving the agricultural sector and increasing rural income fuels economic growth.