Deutsche's 10 picks to play the rural demand theme

Moneycontrol Bureau

Brokerage house Deutsche Equities India sees above average rainfall this year being a strong driver of growth in the rural economy, and is advising investors to buy stocks of companies, which have invested in strengthening their presence in rural areas.

"Despite the low direct share of agriculture in India's GDP, rural prosperity has been a key driver of the overall economy. Years of above average monsoon rainfall have been characterized by rising rural prosperity and with India Inc progressively increasing its distribution footprint into rural India, we expect the multiplierimpact of rural prosperity to be higher in the current year relative to previous years of strong monsoons," says the Deustche note.

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M&M, Maruti Suzuki, Bharti Airtel, ITC, HDFC Bank, M&M Financial, Shriram Transport, Grasim Industries, Shree Cements and NHPC are the stocks that the brokerage is recommending.