The Thunder picks

The Monsoon Effect India is an agriculture country, agri space contributes around 33% to national exchequer. The showers are a blessing for the country, with the meteorological department forecasting a normal monsoon this year, there is optimism for India's trillion-dollar economy. This year's 'normal' monsoon would help boost the agricultural output and bring down the rising inflation. The monsoon accounts for 80 per cent of the rainfall in India. Even if the monsoon is delayed by few days, it can have an adverse effect on the economy as about half of India's farm output comes from crops sown during the June-September rainy season. Monsoon is a key to determine agricultural output, inflation, consumer spending and overall economic growth. While a normal rainfall signals growth and prosperity, a below normal rainfall could spell disaster making food more expensive, aggravating the power, water shortage, hitting industrial production which in turn will put more pressure on the government's kitty. Companies related with agri space will get benefit as fertilizer companies have strong co-relation with the rains, hence they are likely to report strong earnings on the back of a bountiful monsoon, which has led to an increase in fertilizer, pesticides, chemical, FMCG and other agri space demand. With this background, we like to introduce our “ The Thunder Picks” - Tata Chemical, GSFC, United Phos. Coromandel Intrl. for 3 months time horizon.

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