Monsoon: Agrochem, crop protection biz to do well, says Deven Choksey

In a chat with ET Now, Deven Choksey, MD, KR Choksey Investment Managers, says overall, it should be a good year as far as 2018-2019 is concerned because of the good monsoon.

Edited excerpts:

For the third consecutive year, the IMD is predicting that it is going to be a normal monsoon. Should this really cheer markets tomorrow?

Definitely, this is a breather and market will be taking a positive view on this particular announcement. Any positive news on the monsoon is also positive on the inflation side, particularly on the food inflation side. In an election year like this, it would be good for the market, it would be good for corporate and it would be good for economy in general. This may be a prediction but such predictions definitely bring cheers to the market.

Do you think agri, agri related or rural related stocks should do well?

Yes. The likes of agrochemicals and crop protection businesses certainly should do well given the possibility of a better monsoon. Along with that, consumer spending would increase because ultimately in the second half of the financial year 2018-2019 you would see the positive impact of the monsoon. Thus spending on the consumer side would increase and that should have impact on the industry.


All in all, the first part it is dedicated towards agriculture and rural consumption; the second part would be dedicated towards corporate and the industrial side of the activity. Overall, it should be a good year as far as 2018-2019 is concerned because of the good monsoon.