Indian economy is essentially an agrarian economy, which means that the primary source of earnings for a majority of the country’s population is the agricultural sector. The agricultural sector subsequently, depends largely on the weather. India’s industrial segment which forms the secondary sector requires most of its raw material from farms and needs agriculture for its sustenance.
This is the reason why India invests a huge chunk of its cash flow for the welfare of farmers and for ensuring that they thrive and subsequently the country’s economy thrives. India’s agricultural pattern is highly dependent on monsoons and rainfall as the primary source of irrigation. The cropping patterns are rotated according to the monsoons.
India’s tropical location ensures that the country has ample rains for four months in a year. However, any excess or deficit in this has a chain reaction on the economy. The 2020 monsoon prediction says that the country will have normal rainfall, which has boosted the sentiment for the industries which are dependent on monsoons, such as the FMCG companies, F&B, fertilizer companies etc.
As an investor, if you are planning to take benefit out of this annual event of the business cycles, then beginning of June is the best time to invest in the stocks of these companies which are likely to benefit from a normal monsoon.
There are four major reasons why investing in stock markets at this time will be beneficial for you.
 There is a Rise in Demand for Consumer Product
Monsoon always indicates a rise in demand for household products in urban as well as rural areas. It has been seen that during the monsoon seasons, people often end up spending more, especially in rural areas where the monsoon season also implies earning season. This helps in companies making household items get higher sales and leads to higher demand. As a result, the stocks of companies in the FMCG sector are expected to perform well. CapitalVia’s Monsoon Neuron report is one such report which can help you understand exactly which stocks should be picked from this category and why.
 You are not Exposed to a Very High Risk
When you invest money based on a theme for a long term, the risk associated with the investment gets diversified and hence it is ideal for people who are unwilling to take high risks in the stock markets. It is generally the intraday trading and short term investment which poses a higher risk in the markets, but when you are planning to old quality stocks for a long time, then your risk gets reduced to a great extent.
 Monsoon is a Blessing in Disguise for Fertilizer and Chemical Companies
We all know that every year in monsoon, there comes a menace of insects, rodents, lizards, etc. which are harmful to everyone. Especially with the recent pandemic, everyone wants to keep their houses clean for which chemical products are needed. Also, in rural areas, farmers need to use fertilizers, insecticides and pesticides to keep their crops safe from the menace of insects, pests, rodents etc. This directly has an impact on the fertilizer and chemical companies, whose sales shoot up during the monsoon season. CapitalVia’s Monsoon neuron report will be able to pick the exact stock for you which are poised to soar with the onset of monsoon in different parts of India.
 Fundamental Analysis Pays off in Long Term
The Monsoon Neuron market report is based on fundamental analysis, which helps investors who want to stay invested in the markets for a long time, make the decision on the basis of the company’s value. Also, the explanation and rationale given for the picking of stocks in the Monsoon Neuron report can be used as educational material to understand how a company or a stock can be analyzed fundamentally and what are the major factors to check in-stock while including it in a portfolio on fundamental grounds.
Timing in the stock market investment is extremely crucial and hence, if you are planning to put your money in the stocks which will benefit from the monsoons, Beginning of June is the best time to invest so that you take full advantage of the rally in the prices of the stocks.
However, it should be always considered that investments in stock markets are subject to risk and a person should always invest according to his risk appetite in the markets.