Why monsoon may play a bigger role in the stock market this year

view original post

If predictions of an above-normal monsoon come true, then its contribution to GDP will also grow but the spillover effects can benefit stock market investors too

A better monsoon could lead to higher valuations for companies that have a significant share of their income coming from rural areas

In FY25, the state of the agriculture sector has a crucial role to play, not just for the economy but for stock markets as well. Last week’s Q4 GDP data evoked cheer as it grew by a much-better-than-expected 7.8 percent but the agriculture sector’s GDP rose by a mere 0.57 percent over a year ago, on the back of a 0.4 percent growth in Q3. It has been a tough year for agriculture as the