Rural-focussed stocks related to agro chemicals, tractors, two- wheelers once again hogged limelight after the India Meteorological Department (IMD) said that monsoon rains have covered nearly half of the country.
Cheering the news, two-wheeler majors Bajaj Auto, Hero MotoCorp and TVS Motor Co gained as much as 1.4 per cent, 1 per cent and 1.5 per cent, respectively.
Tractor companies such as Mahindra & Mahindra Ltd and VST Tillers and Tractors gained 1.5 per cent and 0.80 per cent, respectively.
The June to September monsoon is crucial for farm output and economic growth in India, where just over half of arable land is fed by rain. The farm sector makes up about 15 per cent of the $2-trillion economy that is Asia’s third biggest.
Other farm focussed stocks such as Monsanto India and Kaveri Seed Co rallied 1.80 per cent and 1.56, respectively, in trade, while Insecticides (India) Ltd soared over 2.50 per cent intraday.
The southwest monsoon has covered almost half of the country, including the drought-hit Marathwada, even as the overall rainfall deficiency has come down to around 22 per cent, the Met department said on Tuesday.
According to Ministry of Earth Sciences, the monsoon should reach the national capital by last week of the month or early July.