Monsoon Boost: 5 Stocks to Watch with Upside Potential

Hindustan Unilever, Dabur, Insecticides India, Jain Irrigation, and Kaveri Seeds are expected to perform well this monsoon season based on technical charts. The Indian Meteorological Department has raised its monsoon forecast for 2025, projecting rainfall at 106% of the long-period average. The monsoon's impact on agriculture and the economy is expected to boost these stocks.

The Indian Meteorological Department (IMD) has raised its monsoon forecast for 2025, projecting rainfall at 106% of the long-period average (LPA). This above-average rainfall is expected to have a positive impact on the agricultural sector, rural income, and the overall economy [1].

Technical charts indicate that stocks from sectors directly affected by the monsoon, such as Hindustan Unilever (HUL), Dabur, Insecticides India, Jain Irrigation, and Kaveri Seeds, are likely to trade favourably during this monsoon season [2]. These companies are expected to benefit from the increased agricultural production and economic expansion brought about by the strong monsoon.

The monsoon season in India started earlier than usual on May 24, 2025, and is expected to remain above normal for the next four months. This early and robust start to the monsoon season is a positive indicator for the agricultural sector, which relies heavily on these rains for crop cultivation and water replenishment [2].

The early arrival of the monsoon has already begun to influence stock prices. For example, shares of Hindustan Unilever, a major player in the consumer goods sector, are expected to gain from the anticipated increase in rural income and agricultural productivity. Similarly, Dabur, known for its natural health products, is likely to benefit from the increased demand for health and wellness products driven by the monsoon season [2].

Insecticides India, which supplies agricultural chemicals, is expected to see a surge in demand due to the enhanced agricultural activities during the monsoon season. Jain Irrigation, a leading provider of irrigation solutions, is also likely to see increased demand as farmers prepare for the monsoon [2].

Kaveri Seeds, a major player in the seed industry, is expected to benefit from the above-average rainfall, which is likely to boost agricultural productivity and increase demand for seeds. The early monsoon is expected to provide ample time for farmers to sow their crops, leading to a potential increase in crop yields [2].

The Indian monsoon is crucial for the country's agricultural needs, providing approximately 70% of the water necessary for crops. The above-normal rainfall is expected to lower food costs, maintain inflation within the central bank’s target range, and enable India to increase shipments of key commodities like rice and onions [2].

In conclusion, the early and robust start to the monsoon season in India is expected to boost the stocks of Hindustan Unilever, Dabur, Insecticides India, Jain Irrigation, and Kaveri Seeds. Investors and financial professionals should keep an eye on these sectors as the monsoon season progresses.

References:
[1] https://www.business-standard.com/markets/news/hul-kaveri-seeds-among-5-stock-picks-this-monsoon-check-upside-potential-125052800473_1.html
[2] https://www.tradingview.com/news/invezz:b807daa50094b:0-india-forecasts-strong-monsoon-rains-for-2025-to-boost-agriculture/