You are right that some of the rural oriented stocks have done very well and the stocks you have named are just some of these outperformers. It is rural India that is now driving the economic demand revival M&M has been one of the best performers in the market since Mar-20. While cars division saw tepid sales, its tractors division has been a star performer.

Interestingly, M&M is not alone as other tractor players like Escorts and TAFE also reported record tractor sales. Then there were FMCG players like Britannia that reported stellar numbers in the Jun-20 quarter, on the back of robust rural sales. One factor, among the many has been the robust monsoon projection and its arrival on time this year.

It may be recollected that in April 2020 IMD projected normal monsoons with rains at 101% of the long period average (LPA). This was a sentiment booster for agri-based companies and for companies reliant on rural incomes. The 2020 season began with normal rains and even timeliness and spread of the monsoons across India have been very favourable.

Rural India is also enjoying the dividends of late rains in September in 2019 resulting in overflowing reservoirs and a bumper Rabi crop. This was a huge boost to farm incomes even in the previous year, despite weak Kharif. Rural demand has benefited as the COVID did not really disrupt the demand equations in the aftermath of a bumper harvest year for farmers.