Recently even Hero Motocorp has told about the increase in number of inquiries, for their products, from rural areas. Big FMCG companies like HUL have also said about the increase in rural demand.
If the monsoon is proper then the agricultural produce would increase. This helps both the lives of farmers and also the economy. Farmers get huge income, which subsequently increases their purchasing power. For economy, as the supply rises, the inflation reduces to an extent. So the country prosper. With the increase in purchasing power of rural people their demand rises.
The companies in FMCG sector, agricultural products and tractor manufacturing companies are all mainly dependent on agricultural demand.
So companies like Mahindra & Mahindra, Hero Motocorp, HUL, ITC, etc. ,would be benifited if there is an increase in rural demand.
Disclaimer:
I request readers to do their own research before purchasing any stocks or consult with a SEBI registered advisor before investing in any stocks.
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