Poor monsoon becoming major worry for Indian markets

Poor monsoon becoming major worry for Indian marketsAugust 31, 2023New Delhi, August 31 (IANS) The poor monsoon is becoming a major worry and unless the rains revive soon, the economy and markets will come under a cloud, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.The declining bond yields in the US has 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 sectorslikeIT, he added.BSE Sensex is down 71 points at 65,015 points. Nestle is down more than 1 per cent, Bajaj Finance is also down 1 per cent.–IANSsan/kskhttps://ians.in/detail/poor-monsoon-becoming-major-worry-for-indian-markets–20230831111057/