Stock Market: Another relief news for the market, hopes of continuation of boom increased

After the announcement of relief on tariffs by US President Trump, the market has seen a boom today. Now the stock market has received another positive news. This news is very important for the market and apart from short-term fluctuations, this news gives confidence that the market will remain strong. Actually, the Meteorological Department has released the initial forecast of monsoon for this year today. According to which this year the monsoon will be more than normal. Monsoon has always been the most important factor for the growth of the Indian economy. This is the reason why the market keeps an eye on the movement of monsoon and there are some sectors where the direct impact of monsoon is seen.

Why this year's monsoon is very important

There are many global factors around the world whose effect is being seen. This includes Trump tariffs and the ongoing conflict around the world. At present, it is believed that the effect of these shocks on the Indian economy will be limited because the domestic economy itself remains strong. Now with a better monsoon, the hope of this strength remaining in the future has increased. Pranab Mukherjee once said that in the true sense, the monsoon is the finance minister of the country. That is, it is because of this that it is decided how much the government will earn and how much it will spend. With time, the governments have improved the irrigation system, although a large part of agriculture is still dependent on the monsoon, so there is a deep connection between the monsoon and the income of rural areas. Monsoon rain provides 70 percent of the country's annual needs. Good rains create the possibility of increasing income. If the income increases, it helps the demand. This increase helps in accelerating the economy. Along with this, food inflation has a big impact on the inflation rate and the monsoon helps the most in controlling this food inflation. This means that on one hand, a good monsoon keeps inflation under control and on the other hand, it also boosts demand, meaning it helps growth from every angle. How does monsoon help the economy? Monsoon rain recharges the land and water reservoirs. This provides an environment for plants to grow, while drinking water and electricity are produced from the reservoirs. Better crops increase the income of rural areas and bring down inflation. On the other hand, water reserves and electricity production ensure stability for the rest of the year. With the increase in income in rural areas, the demand for FMCG sector, mobile, TV, refrigerator increases and these sectors benefit from the increased demand, while banks benefit because better income ensures timely repayment of loans issued and NPAs come under control. On the other hand, the demand for new loans increases because on better income, people start planning for everything from building houses to agricultural equipment and two wheelers or four wheelers. This means that monsoon has a direct impact on the demand of sectors like FMCG, consumer durables, auto and banks. 
 

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