Rural markets still key for FMCGs

Normal monsoon makes FMCG, automobile and consumer durable firms optimistic about growth prospects

In spite of farmers’ agitations in Tamil Nadu, Maharashtra and Madhya Pradesh, companies with a large exposure to the rural markets are getting ready to ride the gravy train because of the forecast of a normal monsoon, the second in a row. 

Those in the FMCG, consumer durable, farm input and automobile segments like tractor and two-wheeler have become busy. Sentiments have turned stronger and they expect a lot of buying in these markets straight away, though the harvest will come to the market only in October to coincide with the festival season. The share prices of several such companies