Poor monsoon worries investors
The poor monsoon is becoming a major worry and unless the rains revive soon, the economy and markets will come under a cloud, says VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
image for illustrative purpose
New Delhi The poor monsoon is becoming a major worry and unless the rains revive soon, the economy and markets will come under a cloud, says VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
The declining bond yields in the US have turned the global market construct favourable for equities. But this is unlikely to create a highly favourable environment in the Indian market since the poor monsoon is becoming a major worry, he said.
It is important to remember that the RBI’s projection of FY24 inflation at 5.4 per cent is based on a normal monsoon. Presently, the probability of a deficient monsoon is high, he said.
This will impact GDP growth and keep inflation elevated. The impact on the FMCG sector will be high. Investors may consider tweaking their portfolio with higher weightage for more inflation-proof segments like pharmaceuticals and export oriented sectors like IT, he added.
