Stock markets surged in trade on Monday with both the benchmark indices extending their gains for the fourth straight session. Experts believe the heavy rainfall in Mumbai has revived monsoon hopes and FIIs turning net buyers has also boosted investor sentiment. The Nifty gained 159.50 points and ended the trading day at 24,430.35 and the Sensex gained 521.16 points and ended the trading day at 78,285.07. Broader markets witnessed rangebound trade and marginal gains for most of the trading session.
As the spotlight is on how the monsoon unfolds, Feroze Azeez, Joint CEO, Anand Rathi Wealth Limited told Timesnownews.com, “El Nino by itself does not decide market returns. History tells us there is no straight-line relationship between weak monsoon and Nifty performance. In fact, even in deficient or below-normal monsoon years, markets have often delivered positive returns because earnings, liquidity, valuations, global cues, and policy response also matter. But that does not mean El Nino is irrelevant. A weak monsoon impacts India through rural income, food inflation, crop output, and consumption. This year, with June rainfall sharply deficient and the probability of a below-normal season high, the market will closely watch the Monsoon Core Zone because that is where the real rural demand story sits.”
The impact will be uneven across sectors. Rural FMCG, two-wheelers, tractors, farm equipment, fertilizers, agrochemicals, microfinance, and rural NBFCs are the most sensitive pockets because their demand or repayment cycle is directly linked to farm cash flows. Sugar, edible oil, seeds, irrigation, cement, and logistics may see a more mixed impact depending on supply, prices, and post-monsoon demand. On the other hand, IT, pharma, energy, and urban banks are relatively insulated. So, the right response is not panic, but stay diversified.
Analysts believe most of the banks which reported June quarter provisional numbers have met or exceeded estimates, and overall growth in the banking sector so far has been strong. In terms of sectors, realty, banking, financial services, metals and autos had an upbeat session, while FMCG and PSU banking shares traded lower.
Stock Market Today: Sensex, Nifty Extend Winning Streak To Fourth Straight Session As FII Buying, Monsoon Boost Lift Markets
