IMD’s prediction of a normal monsoon, despite El Nino worries, have given investors a chance to eye certain stocks that might see a beneficial impact from the rain. Sectors such as agrochemicals, fertilizers, and rural consumption stocks are expected to benefit from increased demand and agricultural growth. Motilal Oswal selected five stocks that might see a positive impact as a result of the oncoming monsoon.
Monsoon stock picks
ScripCMPFinolex IndustriesRs 171Mahindra & Mahindra Financial ServicesRs 300Tata Consumer ProductsRs 792CoromandelRs 958Bata IndiaRs 1,577
Traders should hold these stocks for the duration of the next month or two, for a potential upside of 12%. Additionally, the stop-loss at 6% of the CMP mentioned. Motilal Oswal also added that the risk is relatively high. In this monsoon basket, all the scrips are given equal weightage, since the brokerage believes they will see an equal gain. The brokerage also gave their technical rationale for picking each stock.