In an exclusive interview with Network 18 Editor-in-Chief Rahul Joshi, the FM explains how various schemes laid down by her government will help stimulate rural demand.
In November too, there have been huge advertisements of after-Diwali offers by retailers such as Big Bazaar, Spencer and Reliance Fresh
The scare caused by truant rainfall in June has been made up to a considerable extent in July. If August also lends a shoulder, then farm output could get a major boost.
Investors should take the initial monsoon forecasts with a pinch of salt. Also, key factors to watch out for in sectors that depend on rural demand
While packaged goods company earnings and other high-frequency indicators show an improvement in rural consumption, it has to be reconciled with rising rural distress.
Harsha Upadhyaya of Kotak Mutual Fund is upbeat on the market and asserted that the fund house stayed invested in it despite DII selling. He believes earnings growth have improved and will continue the trend in March as well.
For the FMCG sector rural demand is yet to pick up and a lackluster volume growth is expected in this space this quarter, says Anand Mour, FMCG Analyst at ICICI Securities.
Vinod Aggarwal, CEO, Volvo Eicher sees good demand for commercial vehicles in the month of October on back of good monsoons aiding rural demand, lower interest rates, and more money in hands of consumers due to seventh pay commission.
After a sluggish growth in last two years, FMCG major Godrej Consumer Products (GCPL) sees a revival in the rural demand on account of good monsoon.
According to global financial services major Bank of America Merrill Lynch (BofA-ML), the revival in rural income growth along with the payment of 7th Pay Commission arrears this month implies a consumption driven recovery for the country rather than an investment driven one.
The company had posted a net profit of Rs 62.73 crore in the April-June quarter a year-ago, Godrej Industries said in a Bombay Stock Exchange (BSE) filing.
Reinforcement of rural demand along with increase in pays of government employees and accommodative monetary stance embody the strengthening reflationary impulses, says a note by equity research house Emkay which expects the trend to culminate into a bump up in consumption demand.
Earnings of fast moving consumer goods (FMCG)companies in the June quarter quarter is a clear reflection of this sentiment as most the players in this space have disappointed street estimates.
After seeing increased demand for scooters in rural areas, the company has increased its capacity by about 10 percent, Yogesh Munjal, MD of Munjal Showa told CNBC-TV18
Optimism for the Indian equity markets prevails given Nifty has crossed and sustained 8250 level convincingly over the last few session, says Vineet Bhatnagar, MD, PhillipCapital.Â
Country is likely to clock a GDP growth rate of 7.4 percent this fiscal and key legislations, like Aadhaar bill, bankruptcy code and Monetary Policy Committee are likely to support medium-term outlook, an HSBC report says
Rajesh Jejurikar of M&M says there is improvement in sentiment but whether it translates into real demand depends on the way monsoon pans out. "Rural demand is ultimately based on cash flows," he adds.
Sunil Duggal, CEO of Dabur India said while FY17 is seen to be a better year given hope of good monsoons and pick up in rural demand in particular, the company will be able to achieve double-digit revenue growth only in the second half of the year.
Speaking to CNBC-TV18, Raghunandan says that rural demand will be much better in 2016.
Rama Bijapurkar, Market Research Consultant believes urban space is performing better than rural and eCommerce will be the key driver to meet consumer demand.
Deosthalee says L&T Finance is currently focusing on lending only to renewable energy and operational projects within the infrastructure space, adding there is likely to be some improvements in the road sector over the next few months.
Despite consumer demand continuing to remain slow, especially in the rural markets, HUL management reaffirmed its guidance of maintaining competitive volume growth and modest improvement in margins
In an interview with CNBC-TV18, Ullas Kamath, Joint MD and CFO of Jyothy Laboratories said the rural and urban demand are improving with a fall in commodity prices and low inflation numbers.
A surge in consumption, especially in rural India, was a big contributor which led to the recovery in the post-2008 financial crisis years.
In an interview with CNBC-TV18, Ramesh Iyer, Managing Director of M&M Financial Services said recovery in growth and NPAs is expected in festival season from September onwards.