Indian equities markets eyes monsoon season
May 15th, 2011 - 6:45 pm ICT by IANSMumbai, May 15 (IANS) News of the monsoon’s progression will be one of the main triggers for Indian equities markets as normal rainfall holds the key to bringing down inflation, say analysts.
“As we approach June, the focus of the markets would shift to the monsoon. A normal monsoon is very critical for the Indian economy which is battling high food inflation,” said Sanjeev Zarbade, vice president, private client group research, Kotak Securities.
According to the India Meteorological Department, rains are expected to be normal this year, boosting the prospect of a healthy output from the farm sector, which is still majorly dependent on rains.
The latest IMD forecast said that “date of onset of southwest monsoon over Kerala is likely to be on May 31 with a model error of ± 4 days.”
The monsoon is then expected to gradually progress and cover most of parts of central and northern India by July.
Policymakers too are hoping for a good monsoon season as any disruption in rain may cause havoc with the government’s finances, pushing its fiscal deficit higher than the projected 4.6 percent.
A normal monsoon season will help raise output of key crops like rice, sugar bringing a relief to a country battling inflation.
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- No need to worry about monsoon, assures government - Jul 21, 2011
- Below normal monsoon likely this year (Lead) - Jun 21, 2011
- Monsoon arrives in Kerala three days before schedule (Lead) - May 30, 2011
- Mercury dips as monsoon arrives in Delhi (Second Lead) - Jun 26, 2011
- India monsoon likely to be normal (Second Lead) - Apr 19, 2011
- India's northeast records 38 percent deficit rainfall - Aug 03, 2011
- Monsoon arrives in capital (Lead) - Jun 26, 2011
- Monsoon on way, showers cool Delhi (Night lead) - Jul 04, 2010
- Monsoon to hit Delhi in two days (Lead) - Jul 04, 2010
- Monsoon likely to be normal (Lead) - Apr 19, 2011
- India to have normal monsoon this year: Bansal - Apr 19, 2011
- Monsoon raises hopes of better farm output, tame inflation - May 31, 2010
Tags: crops, disruption, farm sector, fiscal deficit, group research, havoc, imd, india meteorological department, indian economy, inflation, kerala, model error, monsoon season, mumbai, northern india, policymakers, private client group, rainfall, southwest monsoon, vice president