Home Blogs Rural Market Grew at 1.5-2 Times the Urban Market

Rural Market Grew at 1.5-2 Times the Urban Market

Reading Time: 1 minutes

Good harvest & rural electrification also driving growth

Tractor sales in India grew by 13% during the April – December 2018 period and is expected to touch the 8,00,000 mark by the end of this financial year. Agricultural credit and state subsidies have had a positive impact on the tractor industry.

Consumer goods manufacturers have also said that their rural sales have been outpacing urban markets by a wide margin. Rural market has continued to grow at 1.5 to 2 times the urban market. Case in point was Hindustan Unilever’s (HUL) December 2018 quarter result. With rural demand continuing to outpace urban demand, HUL recorded a 10% volume growth in this period.

According to a senior officer at Godrej Industries, apart from a good harvest, rural electrification and low penetration of appliances are the other key factors driving growth. Good monsoon in 2018 and the hike in minimum support prices are also pushing growth in rural markets. With elections due in the near future, availability of money in rural markets will improve, and growth is expected to continue for the next 2 quarters.

Investors can benefit from increased rural demand by buying the Rising Rural Demand smallcase. This smallcase has companies that either derive a significant amount of their revenue from rural India or are striving to enhance their foothold across rural markets to benefit from increasing rural demand.

FPIs push markets up

Aided by buying from Foreign Portfolio Investors (FPI), benchmark indices closed in the green last week. Nifty closed up 1.04% at 10,907.0 and Sensex closed up 1.05% at 36,386.6.

FPIs bought Rs 891.75 crore worth of shares during the week. Inflation, measured by the consumer price index, increased by 2.19% on a year-on-year basis in December 2018.

Namrata Chandrasekar

CX Manager at smallcase

IT Sector Revenue Expected to Grow by 3.6%

Steel Production Grows by 3.1% during 2017-18

Cancel reply

Dislaimer: This platform is intended for informational purposes only and is not intended to provide investment advice. The stock prices displayed are delayed and may not reflect the most current market conditions. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. You can also consider consulting a financial advisor before making any investment decisions. Smallcase Technologies Private Limited shall not be responsible for any losses that may occur as a result of using this platform.

The views expressed in this article are those of the author and do not necessarily reflect the views of Smallcase Technologies Private Limited (STPL) or any of its associates. The information provided in this article is for educational and informational purposes only. Investors are responsible for their investment decisions and are responsible to validate all the information used to make the investment decision. Investors should understand that his/her investment decision is based on personal investment needs and risk tolerance, and performance information available on here is one amongst many other things that should be considered while making an investment decision. Past performance does not guarantee future returns.

Investments in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. The examples and/or scurities quoted (if any) are for illustration only and are not recommendatory.

The content and data available on the website, including but not limited to index value, return numbers and rationale are for information and illustration purposes only. Charts and performance numbers do not include the impact of transaction fee and other related costs. Past performance does not guarantee future returns and performances of the portfolios are subject to market risk. Data used for calculation of live returns and other information is provided by exchange approved third party vendors and has neither been audited nor validated by the Company. Detailed return calculation methodology is available here. Detailed volatility calculation methodology is available here.

The user agrees to assume complete and full responsibility for the outcomes of all of his/her investment decisions that he/she makes, including any direct, indirect, incidental, consequential, special, punitive or any other losses/damages if any that may be incurred by him/her. Smallcase Technologies shall not be responsible or liable for any direct, indirect, incidental, consequential, special, punitive or any other losses/damages arising out of the recipient's investments. For disclosures related to Smallcase Technologies Pvt Ltd, please visit this page .