The shares of companies whose business performance is dependent on seasons or calendars are called seasonal stocks. They tend to remain more or less stable rest of the year except the time when it is their peak sales season.
If you have invested in seasonal stocks, you need to continuously observe the recurring patterns in the stock market prices like a watchdog. Typically, seasonal stocks can be divided into the following categories:
Summers : The stocks of consumer durables (air conditioners), food & beverages (cold drinks and ice creams), travel and tourism industry fall are highly vulnerable in the summers. You can consider buying shares of Whirlpool, Videocon, Hitachi, Voltas, Blue Star, Vadilal, Manpasand, Vadilal, Pepsi Co, Coca Cola, Thomas Cook and Cox & Kings.
Monsoons: The performance of monsoon stocks is most unpredictable because monsoon forecast can be dicey. Normal monsoon is good news but scarce and heavy rainfall can spell trouble. Agro, auto, fertilizer, chemical and FMCG stocks fall under this category. You can consider buying stocks of GSFC, Vedanta, M&M, Bajaj Auto, Colgate-Palmolive, HUL, Emami, Eicher Motors and Marico. Some of these companies experience wide fluctuations on the stock market as their operations come to halt in the monsoon. For instance, Vedanta share price goes high when the company resumes its mining operations after monsoon.
Winters: The stocks that are dependent on winters are mostly beverages (tea and coffee) and apparels (winter wear and sportswear). Tata Coffee and Raymond stocks can be considered for investing in winters.
Festivals: Diwali, Christmas, Holi, New Year and other festivals send the stocks of most companies rallying upwards. People splurge a lot on these occasions, as a result of which business sales go up. The stocks which usually do well around festivals are home appliances, vehicles, machinery, electronics, jewellery, real estate, apparels and food & beverages.
Budget: The budget is also the time when stock markets go on a roller-coaster ride. Almost every industry gets affected, depending on the policies announced by the Finance Minister in the budget.
In addition to the above, even quarter closing and year closing results are considered to have season impact on the share prices.
If you have invested in seasonal stocks, you need to continuously observe the recurring patterns in the stock market prices like a watchdog. Typically, seasonal stocks can be divided into the following categories:
Summers : The stocks of consumer durables (air conditioners), food & beverages (cold drinks and ice creams), travel and tourism industry fall are highly vulnerable in the summers. You can consider buying shares of Whirlpool, Videocon, Hitachi, Voltas, Blue Star, Vadilal, Manpasand, Vadilal, Pepsi Co, Coca Cola, Thomas Cook and Cox & Kings.
Monsoons: The performance of monsoon stocks is most unpredictable because monsoon forecast can be dicey. Normal monsoon is good news but scarce and heavy rainfall can spell trouble. Agro, auto, fertilizer, chemical and FMCG stocks fall under this category. You can consider buying stocks of GSFC, Vedanta, M&M, Bajaj Auto, Colgate-Palmolive, HUL, Emami, Eicher Motors and Marico. Some of these companies experience wide fluctuations on the stock market as their operations come to halt in the monsoon. For instance, Vedanta share price goes high when the company resumes its mining operations after monsoon.
Winters: The stocks that are dependent on winters are mostly beverages (tea and coffee) and apparels (winter wear and sportswear). Tata Coffee and Raymond stocks can be considered for investing in winters.
Festivals: Diwali, Christmas, Holi, New Year and other festivals send the stocks of most companies rallying upwards. People splurge a lot on these occasions, as a result of which business sales go up. The stocks which usually do well around festivals are home appliances, vehicles, machinery, electronics, jewellery, real estate, apparels and food & beverages.
Budget: The budget is also the time when stock markets go on a roller-coaster ride. Almost every industry gets affected, depending on the policies announced by the Finance Minister in the budget.
In addition to the above, even quarter closing and year closing results are considered to have season impact on the share prices.
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