Normal monsoon boost Indian economy; related stocks may gain: Analysts

Analysts consider the south-west monsoon to be the lifeline of India's agri-based economy, as it is likely to brighten outlook for bumper crop output amid inflationary times post covid-19 blowout.

Farm-income related stocks are back on analysts’ radar after the Indian Meteorological Department (IMD) and Skymet forecasted a normal monsoon for India.  While the IMD anticipates average rainfall this monsoon season to be 103 per cent of the long period average (LPA), 4 per cent higher than the April forecast, Skymet expects monsoon to be 'normal' at 98 per cent of the LPA.

The south-west monsoon is considered to be the lifeline of India’s agri-based economy, as it is likely to brighten the outlook for bumper crop output amid reigning inflationary pressures post blowout of covid-19, analysts said.

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