The Indian monsoon is closely watched by investors as it holds significance for the government and the economy. The Indian Meteorological Department predicts a normal southwest monsoon this year, though El-Nino conditions pose a risk. A study by Stoxbox shows that the market does not react in a linear way to the outcome of the monsoon, but a good monsoon could boost sales for companies in the sectors of staples, consumer durables, automobiles, agro-chemical, fertilizers, and banks/NBFCs. Fertilizer and agrochemical companies are likely to benefit from a normal or above-normal monsoon.
