New Model Launches and Low Base Speed Up Auto Sales
Favourable macroeconomic conditions are expected to further fuel growth in the auto sector
Auto companies record impressive growth in June
Tata Motors reported a 62.9% rise in sales to 18,213 units in June, on the back of continued demand for its four new vehicles — the Tiago hatchback, Tigor sedan, compact SUV Nexon and full-bodied SUV Hexa.
Mahindra and Mahindra (M&M) posted 11.9% rise in sales to 18,137 units during the month. A senior official at M&M said that macroeconomic conditions such as fuel prices, interest rates and raw material prices remain at satisfactory levels and expected the growth trend to continue.
Read more about the auto sector in our postweek report.
You can invest in the growth of the auto industry with the smallcase Auto Tracker.
Higher MSP to push up rural growth of FMCG companies
The government’s decision to set higher minimum support price for most kharif crops is expected to impact sentiments positively, pushing up rural sales growth of FMCG companies. According to analysts, 1/3rd of all FMCG sales comes from rural areas, and an uptick in rural consumption will augur well for these businesses.
A recent report by Nielsen said that the January-March 2018 period saw rural markets for FMCG companies growing 1.4 times that of urban markets. This trend is likely to get stronger with a good monsoon and more rural-focused initiatives by the government heading into a general election in 2019.
You can benefit from this trend by investing with the smallcase FMCG Tracker.
