The southwest monsoon in India provides a natural economic stimulant. It delivers 75% of the yearly rainfall to farms, replenishes reservoirs, and increases rural income. In light of this, the India Meteorological Department (IMD) predicted monsoon rainfall in 2025 to be above average.
As a result, the foregoing is a positive indicator for India since it encourages high agricultural output, especially in rural areas that rely heavily on rain-fed farming. Furthermore, a successful monsoon increases rural income and may encourage demand. On the other hand, a bad monsoon can damage crops, boost food prices, and stall growth. Given all of this information, a positive monsoon prediction helps a wide range of businesses, including agrochemicals, fertilizer, tractors, two-wheelers, and fast-moving consumer goods. So now is the opportunity for savvy retail investors to take advantage of seasonality indications, such as moving into rural-oriented equities to position portfolios ahead of the rains. AI-driven tools like Jarvis AI, the best share market advisor in India, can crunch weather and economic data. This helps you to pinpoint the best sector stocks to buy now based on monsoon trends.
5 sectors to invest in in monsoon 2025
Take a look at these detailed reports and the attached graphs from NSE India to understand the best-performing monsoon sectors and stocks. Continue reading
AGRICULTURE & AGROCHEMICALS SECTOR
Agriculture employs ~45% of India’s workforce and contributes nearly 18% to GDP, remaining highly monsoon-sensitive. In 2022, food grain output touched a record 315 million tons, driven by a timely and strong monsoon year, and stocks like M&M and Britannia rallied over 15% in Q3 alone. So, we’re in monsoon front-loading years, and consider investing in agri-input and farm machinery-related stocks. You can take help from Jarvis AI to screen thousands of firms to flag the “best agriculture stocks to buy now,” such as these rural-exposed names, when forecasts look promising. Take a look at these three stocks:
- Coromandel International Ltd.
Coromandel International Ltd. founded in 1961 works in the manufacture and market of fertilizers and pesticides products. Additionally, it deals with nutrients and other allied business, and crop protection segments. The crop protection segment produces insecticides, fungicides, and herbicides.
2. Fertilisers & Chemicals Travancore Ltd
This fertiliser and chemical manufacturing company established in 1943 dealing in products like Ammonia, Sulphuric Acid, Ammonium Phosphate-Sulphate (FACTAMFOS), Ammonium Sulphate, Zincated Ammonium Phosphate, Caprolactam, and also complex fertilizers. Gypsum, Nitric acid, Soda Ash and coloured Ammonium Sulphate are major by-products. Fertlisers & Chemical Travancore Ltd is the first fertiliser manufacturing company in independent India.
3. PI Industries Ltd
One of India’s top agriscience and fine chemical firms, PI Industries Ltd. was founded in 1946 and is renowned for providing farmers with cutting-edge agricultural solutions. Insecticides, fungicides, and herbicides are among the crop protection chemicals they manufacture and distribute. Plus, also in the research and development and partnering with other companies for various projects.
4. Rallis India
It’s TATA Group Company, established 150 years ago, deals in the manufacturing of agrochemicals and has a chain of agriculture inputs offering seeds and organic growth nutrients.
FMCG SECTOR
India’s rural areas account for ~35-40% of FMCG revenue. Fast-moving consumer goods companies also enjoy strong monsoon growth. It is linked with our farming population, as they sell everything from small biscuits to shampoos and more to the rural population. A good harvest means a good income for farmers, and that gives them the freedom to invest more in mass-market FMCG products. Good rainfall also helps stabilize input prices like milk, sugar, and wheat, crucial for food-based FMCG firms. According to a news report, FMCG in 2024 rose by ~4–5% in consumer durables and FMCG.
Here are the best FMCG stocks to buy now (during good monsoon periods):
1. Hindustan Unilever
The Indian fast-moving consumer goods company Hindustan Unilever Limited has its headquarters in Mumbai. It is a division of Unilever, an Anglo-Dutch corporation. Foods, drinks, cleaning supplies, personal hygiene items, and other necessities for consumers are among its offerings.
2. Dabur India
These days, Dabur works in important consumer product categories like food and beverage, hygiene, skin care, hair care, oral care, and home care. With a broad distribution network that includes 7.7 million retail locations, the ayurvedic firm is well-established in both urban and rural regions.
3. ITC
In the FMCG, packaging, paperboards & specialty paper, and agribusiness sectors, ITC is well-represented. Being the only business of its scale and diversity in the world to be carbon, water, and solid waste recycling positive demonstrates ITC’s goal to be a model for sustainable practices. Nearly 9 million individuals, the bulk of whom are among the poorest in rural India, also benefit from the sustainable lives that ITC’s companies and value chains provide.
4. MARICO
Marico Limited is a worldwide consumer goods company based in India that offers wellness, beauty, and health-related products and services. Marico is based in Mumbai and operates in more than 25 Asian and African nations.
AUTOMOBILE SECTOR
Rural income drives sales of two-wheelers, farm vehicles, and entry-level cars. After a healthy monsoon, farmers have more cash to upgrade tractors and bikes. Plus, it supports loan repayments, boosts dealership volumes, and strengthens rural mobility. Tractor sales rise by 10–15% in years with surplus rainfall. Two-wheeler penetration in rural India is almost 40%. For instance, Mahindra & Mahindra (India’s top tractor maker) saw tractor sales drop 3% in Apr–Dec 2023 due to a weak farm year.
High-growth auto stocks during a normal/excess monsoon:
- MAHINDRA & MAHINDRA
Agribusiness, aerospace, components, consultancy, defense, energy, industrial equipment, logistics, real estate, retail, steel, commercial vehicles, and two-wheelers are among the industries in which Mahindra is well-represented. The Mahindra Group’s biggest source of income comes from the automotive and farm equipment businesses.
2. HERO MOTOCORP
Delhi is home to the headquarters of Hero MotoCorp Limited, a multinational Indian producer of motorcycles and scooters. About 30% of the Indian two-wheeler market is occupied by it. As of 2024, the Munjal family holds the largest interest in the business, with 34.75% of the corporation.
3. TVS Motor Company
TVS Motor Company is an Indian multinational motorcycle manufacturer based in Chennai. It is India’s third-largest motorbike company by revenue. The company’s yearly sales total three million units, with a production capacity of more than four million automobiles. TVS Motor Company is also India’s second largest two-wheeler exporter, with shipments to more than 60 nations.
4. Escorts Kubota
Escorts Kubota Limited, previously Escorts Limited, is an Indian multinational business that manufactures agricultural machinery, construction gear, material handling, and railway equipment. Its headquarters are in Faridabad, Haryana. Traders often “ride the monsoon theme” by increasing auto exposure early in Q2 if the rains look good. Jarvis AI can analyze demand signals (like dealer inventory and rural consumption indices) to select the top auto names set to rally under a stronger monsoon.
POWER & RENEWABLE ENERGY
Monsoons recharge hydro reservoirs and boost renewables. About 12% of India’s power comes from hydropower, and good rains mean higher hydro output and less reliance on costly thermal generation. Wind power also peaks in the monsoon months. This steadies the grid and curbs power outages.
Best power sector stocks to buy now (in rainy years):
1. NHPC
NHPC Limited (formerly the National Hydroelectric electricity Corporation) is an Indian public sector hydropower business founded in 1975 to plan, promote, and coordinate the integrated and efficient development of hydroelectric electricity. It has been extended to incorporate alternative energy sources such as solar, geothermal, tidal, and wind.
2. SJVN
A Navratna Category Indian public sector firm, SJVN (formerly Satluj Jal Vidyut Nigam) produces and distributes hydroelectric power. In 1988, it was founded as Nathpa Jhakri Power Corporation, a joint venture between the Himachal Pradesh and Indian governments. The company operates three hydropower plants—Nathpa Jhakri, Rampur, and Naitwar Mori with a combined active hydroelectric capacity of 1972 MW.
3. Adani Green Energy
Based in Ahmedabad, India, Adani Green Energy Limited (AGEL) is a renewable energy company. One of the biggest solar photovoltaic systems in the world, the Kamuthi Solar Power Project, is run by the company.
4. Tata Power
A component of the Tata Group, Tata Power corporation Limited is an Indian electric utility and energy production corporation with its headquarters located in Mumbai. It is the biggest integrated power company in India, with an installed electricity producing capacity of 14,707 MW, of which 5847 MW comes from non-conventional (green energy) sources and the remainder from thermal.
Conclusion
Your investments don’t have to be unpredictable, even though the monsoon may be. A timely monsoon helps agri-input, FMCG, auto, and renewable energy stocks by increasing crop yields and rural spending. Conversely, flooding rains can briefly hamper construction and durables.
With the help of tools like Jarvis AI, India’s top AI-powered advisory tool, which can handle the heavy data lifting to identify these seasonal winners and notify users of the high-growth agriculture stocks and others as well based on monsoon trends, you can comprehend its sectoral impact and align your portfolio appropriately. Retail investors may transform India’s rainy season into a profitable investing opportunity by employing data-driven tools and keeping up with monsoon forecasts. As the rains approach, don’t just track the weather. Track the trends, the earnings cycles, and the rural demand cues. And let Jarvis AI, your best share market advisor in India, guide you to the right stocks at the right time.
