El Niño risk looms: How to monsoon-proof your portfolio?

Geojit CIO VK Vijayakumar outlines portfolio strategy around monsoon risk as India faces a 43.2% rainfall deficiency as of June 23, against IMD's forecast of 90% of long-period average. Sectors dependent on rural and farm incomes like fertilisers, tractors, FMCG, and entry-level two-wheelers could be negatively impacted, while premium consumption, banking, IT, pharma, and export-oriented segments are likely insulated. The article notes GDP growth could slip to around 6.5% for FY27 if monsoon stays weak, though crude oil correction below $73 after the US-Iran deal offers macroeconomic relief.