M&M gains on improved rainfalls

Despite fear of a drought during the monsoon season, M&M shares have surged 20% since June 1

Tractor maker Mahindra & Mahindra shares gain 1.1 percent as heavy rains hit some of the parched parts of the country, easing fears of a repeat of the widespread drought that gripped three years ago.

Mahindra & Mahindra shares also continue to benefit after April-June earnings earlier this month showed strong demand for its utility vehicles, helping offset some of the concerns about tractor sales.

Despite fear of a drought during the monsoon season, Mahindra & Mahindra shares have surged 19.25 percent since June 1, compared with a 10.8 percent gain in the Nifty during the same period.