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Last Updated : Jul 17, 2012 03:47 PM IST | Source: Reuters

Lack of monsoon rain may not mean stocks pain

Indian stock markets have been awash with worries about a weak monsoon, but a look at the historic performance of the Sensex the June-September season may dispel those fears.


Indian stock markets have been awash with worries about a weak monsoon, but a look at the historic performance of the Sensex the June-September season may dispel those fears.


Stock investors tend to track the monsoon season, given lower-than-expected rainfalls can raise inflation worries and hit rural consumption.


However, a look at how Sensex has performed over the monsoon season shows little actual impact from rainfalls. In 2009, a year when India suffered a drought, the BSE index went on to gain 17.1% during the June-September period.

In fact, the Sensex has only fallen twice during periods of short monsoon rainfalls in the past 10 years: when the global financial crisis was percolating in 2008 and during the midst of global bear markets in 2002.



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First Published on Jul 17, 2012 03:42 pm
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