Monsoon effect on Indian Markets

Monsoon effect on Indian Markets It is important to understand that agriculture is the main strength of India's economy and significantly determines the health of indian stock market. Indian companies are directly dealing in the agriculture market like seeds and other companies in the FMCG and auto space indirectly benefit from a robust rural economy. A good/normal monsoon creates a positive perception, and helps in raising the robust agrarian economy income which boosts domestic consumption. Deficient/excess rainfall leads to crop losses, which results in lower earnings for farmers, and lower rural demand and sales resulting in a problem for the economy. Hence, it's safe to say Monsoon in India has a direct impact on the economy as well as the stock market. Let's understand nittty gritties of stock market in india on Smart Money by Angel Broking.