Favourable monsoon forecast may have limited impact on markets: here's why

The Sensex has often given double-digit returns in below-normal rainfall years

The S&P BSE Sensex has given average returns of 29.75 per cent during below-normal rainfall years – those in which rainfall is at least 10 per cent short of the long-period average (LPA), according to the India Meteorological Department.

Business Standard looked at monsoon data and the BSE Sensex’s performance over the past 15 years. Here is what we found:

The Sensex was up 13.08 per cent in 2004, when rainfall fell 13 per cent of the LPA. It rebounded 81.03 per cent in 2009 after the global financial crises, when rainfall fell short by 22 per cent. It again