Motorcycle manufacturers, farm equipment producers, and FMCG companies are witnessing a surge in stock prices after forecasts of timely and above-average monsoon rains for 2024. Sales volumes in rural areas are on the rise, indicating a positive shift, with major consumer goods firms anticipating stronger performance.

• The Nifty FMCG Index has seen a 1.5 per cent increase in May, outperforming the NSE Nifty 50 Index by over two percentage points, a significant reversal from previous months.

• Hindustan Unilever Ltd. and Dabur India Ltd. have both reported gradual improvements in demand, indicating a positive outlook for consumer appetite in India.

• Hero MotoCorp Ltd. has observed a significant uptick in new vehicle inquiries originating from rural areas, signaling increased consumer interest.

• Motorcycle and scooter sales in India surged by 33 per cent year-on-year last month, highlighting the growing demand in rural regions.

• Fast-moving consumer goods companies recorded a 7.6 per cent sales growth in rural areas in the last quarter, surpassing urban growth for the first time in three years.

• Shares of Mahindra & Mahindra, a leading tractor manufacturer, have risen by approximately 17 per cent this month, following better-than-expected fourth-quarter earnings.

• Hero MotoCorp’s shares have also seen a 12 per cent increase this month, reflecting the positive sentiment surrounding rural consumption and potential growth in the motorcycle market.

When will monsoon hit Indiaa coast?

The Indian Meteorological Department (IMD) announced on that the Southwest Monsoon is expected to progress into the South Andaman Sea, parts of Southeast Bay of Bengal, and Nicobar Islands around May 19.

The four-month rainy period will begin on May 31, a day earlier than usual, with the southern state of Kerala poised to receive the first showers, according to the statement.

ALSO READ- Monsoon to be ‘above normal’, predicts IMD

Last month, the IMD had forecasted above-average rainfall for the upcoming season, indicating the potential for significant precipitation across the region.

(Inputs from Bloomberg)