Stocks that gained over 5 percent in less than 1 week on good monsoon reports

Indian equity markets have been on song for more than a month now with positive news flow from all possible directions. Latest news capsules have been keeping markets cheerful as IMD made forecast of expected above average rainfall that will be spread across geographies. IMD has estimated heavy rainfall in most of the areas in India including drought prone areas of Maharashtra.

Based on good monsoon expectations, few stocks have already started flying high along with BSE Sensex. Infact the returns are more than that of the benchmark index Sensex’s returns .In 1 week’s time since IMD has announced it’s above average rainfall prediction Sensex has rallied almost 3 percent also taking support from set of macroeconomic data viz., IIP , Inflation and GDP data as announced by IMF. The obvious beneficiary of good monsoon were the agri sector related stocks including tractor manufacturer.

Following stocks showed superlative returns in the action packed week gone by, Insecticides India, PI Industries, EPC Industries and Rashtriya Chemical Fertilisers (RCF) rose more than 10% each thus catching investors and traders attention alike. Insecticides India rallied 21 percent, PI Industries 17 percent, EPC Industries 16 percent and RCF 11 percent post IMD announcement. In the small cap category, stocks namely RDB Raysons, Kisan Moulding, Rungta Irrigations showed some buying interest and delivered returns in excess of 5 percent each.

In a secular rally in agri related stocks Jain Irrigation with 6 percent, Dhanuka Agritech 5 percent, UPL 9 percent, Chambal Fertilisers 8 percent and Kaveri Seeds with 6 percent kept traders and investors excited about the price gains in such short time. Mahindra & Mahindra company which has its fortunes linked to agri sector rose almost 10 percent in 1 week’s time. Mahindra Tractors is leader in tractor segment in India and good monsoon augurs well for the stock. Good monsoon in general is good for markets but it has direct impact on the above mentioned stocks which have shown a lot of bullishness post IMD announcement. Good monsoon is expected to trigger demand increase for the various agri products including fertilisers’ manufactured by several of these players and hence one should track these stocks closely for coming few months.