Revival in Rural Market On the Cards?

Thu, 25 Feb Pre-Open

   Previous Close   

   09:30 am   

   11:30 am   

   01:30 pm   

   Closing   

The demand from rural India has been dull. Going by the recent financials of top FMCG companies and the two-wheeler sales data, it does give the sense of the prevailing subdued sentiments in rural parts of the country. Two-wheeler sales have gone up by just 1% over the past year. Same goes for tractor sales, which is another good economic indicator for demand in rural India. Tractor sales are down by about 13% over the past year.

Going by the managements of leading FMCG companies, historically growth from rural markets has outpaced that of urban markets by 1.5 to 2x. Of late, trend has changed, with both markets growing at the same pace.

To revive sentiments, what becomes essential is job creation. More the jobs, the more will be earned and thus, the more will be spent.

A factor that could revive growth...

The scheme that promises 100 days of employment to every rural household - the 'Mahatma Gandhi National Rural Employment Guarantee Scheme' (MGNRE), is one among many factors that could help lift sentiments.

Turns out that the scheme recorded its highest enrolment in the quarter ended December 2015 over the preceding five years. The quarter witnessed a 46.1 crore person-day of employment generated under the scheme. This figure has doubled as compared to a year ago, a significant increase indeed. Not to mention that a year back, the government was mulling scrapping this policy.

Significant changes are believed to have been made to the scheme which has led it to become popular. One key change is timely dispatch of wages. Earlier, there were a lot of delays in the deployment of funds by the central government to the states for this scheme. However, this matter has largely been resolved. This is evident in the latest figures, wherein proportion of delayed payments beyond 15 days fell to 53% from 72% in FY15. Though, there is still a vast scope for the improvement in this figure by implementation of automation and technology.

Will this aspect be enough to spruce up demand in rural parts of the nation? Well...it remains to be seen. It must be remembered that there are other factors that impact rural consumption. The monsoons for instance. India has passed through two years of deficit rainfall. And from what we have been reading, a lot of hopes are being put on the rain gods to deliver this year.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

Read the latest Market Commentary

Top Gainers TodayTop Gainers over 1-WeekTop Gainers over 1-MonthTop Gainers over 1-YearTop Gainers over 3-YrsTop Gainers over 5-YrsTop Losers TodayTop Losers over 1-WeekTop Losers over 1-MonthTop Losers over 1-YearTop Losers over 3-YrsTop Losers over 5-YrsOnly BuyersOnly SellersMost Active StocksMost Popular Stocks52 Week High Stocks52 Week Low Stocks

INDICESBSE (Rs 0 to 1)BSE (Rs 1 to 2)BSE (Rs 2 to 4)BSE (Rs 4 to 10)BSE (Rs 10 to 20)BSE (Above Rs 20)BSE - AllBSE-30BSE-100BSE-200BSE-500BSE AutoBSE BankexBSE Capital GoodsBSE Consumer DurablesBSE FMCGBSE HealthcareBSE ITBSE MetalBSE Oil & GasBSE PSUBSE TeckBSE RealtyBSE PowerBSE A GroupBSE B GroupBSE Mid-CapBSE Small-CapBSE Basic MaterialsBSE Consumer DiscretionaryBSE IndustrialsBSE UtilitiesBSE Sensex 50BSE Sensex Next 50BSE Bharat 22BSE 150 MidCapBSE 250 SmallCapBSE 250 LargeMidCapBSE 400 MidSmallCapBSE AllCapBSE LargeCapBSE SmallCap SelectBSE 100 LargeCap TMCBSE InfraBSE ManufacturingBSE CPSEBSE Private BankBSE Diversified FinancialsBSE MomentumBSE Low VolatilityBSE QualityBSE Enhanced ValueBSE Divident StabilityS&P BSE IPOBSE SMEIPOBSE 100 ESGBSE CarbonexBSE GreenexNSE (Rs 0 to 10)NSE (Rs 10 to 20)NSE (Above Rs 20)NSE - AllNSE-50NSE ITNSE Nifty Midcap 50NSE JR. NiftyNSE Bank NiftyNIFTY Next 50NIFTY 100NIFTY 200NIFTY 500NIFTY MidCap 100NIFTY SmallCap 250NIFTY SmallCap 50NIFTY SmallCap 100NIFTY LargeMidCap 250NIFTY MidSmallCap 400NIFTY AutoNIFTY Consumer DurablesNIFTY FinanceNIFTY FMCGNIFTY MediaNIFTY MetalNIFTY PharmaNIFTY Private BankNIFTY PSU BankNIFTY RealtyNIFTY Oil & GasNIFTY SME EmergeNIFTY CommoditiesNIFTY CPSENIFTY EnergyNIFTY India ConsumptionNIFTY InfraNIFTY MNCNIFTY PSENIFTY Serv SectorNIFTY100 Liquid 15NIFTY Midcap Liquid 15NIFTY Midcap 150 Quality 50NIFTY50 Equal WeightNIFTY100 Equal WeightNIFTY100 Low Volatility 30NIFTY100 Alpha 30NIFTY Alpha 50NIFTY Dividend Opportunities 50NIFTY High Beta 50NIFTY Low Volatility 50NIFTY200 Quality 30NIFTY 500 Value 50NIFTY 100 Quality 30SECTORSAgricultureAirlinesAluminiumAsset Management CompaniesAutomobilesAuto AncillariesBanks (Private)Banks (PSU)BankingCementChemicalsDefenceDiagnosticsDronesEngineeringElectric VehicleElectric Vehicle BatteryEnergy SourcesESGEthanolFertilizersFintechFMCGFoodGreen HydrogenHotelsInfrastructureInsuranceInvestment and FinanceInvITIT (Large)IT (Others)LogisticsMediaMetalMiningIndia's Big Tech StocksIndian PharmaMNC PharmaPSUPaintPaperPlasticPowerRating AgenciesReal EstateREITsRenewable EnergyRetailingSemiconductorShippingSteelSugarSupply ChainTelecomTextilesTravel Support Services

10 results 25 results 50 results 100 results All results

Indian Share Market Update: Top Gainers and Losers