Shares of fertilisers, FMCG and two-wheeler companies surged up to 8 percent on Monday after the India Meteorological Department (IMD) said the southwest monsoon is expected to arrive earlier than usual this year.
According to the IMD, the monsoon is likely to hit Kerala on May 27, five days ahead of the normal onset date of June 1. This would be the earliest arrival since 2009, when the monsoon reached Kerala on May 23.
The early monsoon is seen as a key trigger for rural consumption, particularly benefiting sectors like fertilisers, two-wheelers and fast-moving consumer goods, which rely heavily on rural demand.
In the fertiliser space, shares of Rashtriya Chemicals and Fertilizers jumped 7.81 percent intraday to touch Rs 144 on the NSE. The stock opened with a gain of 3.32 percent.
Deepak Fertilisers stock rose 6.46 percent to hit Rs 1,335, while Paradeep Phosphates and Fertilisers and Chemicals Travancore climbed in the range of 4 to 6 percent.
Fertiliser companies typically benefit from robust sowing activity, which picks up pace with the onset of monsoon. Timely and above-normal rainfall also boosts the use of agri-inputs and improves volumes for these firms.
In the two-wheeler segment, Bajaj Auto shares rallied nearly 4 percent to hit an intraday high of Rs 7,987.50. Hero MotoCorp and TVS Motor Company were up by as much as 3 percent. A favourable monsoon season usually boosts farm incomes and supports discretionary rural spending, including purchases of motorcycles.
FMCG stocks also gained ground. Godrej Consumer Products rose over 3 percent to Rs 1,280.60. ITC, Dabur India and Hindustan Unilever added 2.4 percent, 1.86 percent and 1.89 percent respectively on optimism over increased rural spending.
Early rains could lead to improved demand for daily essentials, beverages and personal care products in rural and urban areas.
The IMD had earlier in April forecast above-normal cumulative rainfall for the 2025 monsoon season and ruled out any impact from El Niño conditions, which are typically associated with weaker monsoons.
The southwest monsoon is a key driver for India’s farm economy and supports nearly half of the country’s farmland that lacks irrigation. Agriculture and allied activities contribute around 18.2 percent to India’s GDP.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
