The Mahindra & Mahindra stock on Tuesday entered the coveted Rs 1 trillion market capitalisation club a day after the India Meteorological Department (IMD) said the country will enjoy appropriate monsoon, which is associated with the absence of El Nino, a phenomenon that causes deficient rain and impacts the 'life-saving monsoon'.
The firm has become the second-most valued automaker in India behind Maruti Suzuki which enjoys market capitalisation of Rs 2.76 lakh crore.
The IMD has said the country will see a "normal rainfall", meaning it will be 97 per cent of long period average (LPA), and there's "very less" chance of a deficient rainfall. The department will announce the date of the onset of monsoon and the area-wise distribution of rainfall in mid-May.
Normal monsoon will bring cheers to the farmers with water available in abundance for their crops. This in turn would spur sales of farm equipment and agricultural products.
Mahindra and Mahindra which is among the largest producers of tractors in the world is also engaged in the business of manufacturing and selling farm equipments, agricultural machinery, equipment and other agriculture products.
A normal monsoon forecast thus pushed M&M stock to its 52 week high level on Tuesday.
The M&M stock opened on a bullish note at Rs 815, then gained further ground and touched its all-time high level of Rs 819.10, up 2.23 per cent over its previous closing price.
At 1:44 pm, the stock was trading 1.34% or 10.75 points higher at 811.95 level on BSE.
Following the uptick in the counter, the company's market capitalisation (m-cap) jumped to Rs 1,01,829.91 crore, higher by Rs 2,225.32 crore, from Rs 99,604.59 crore yesterday.
A similar movement was seen on the NSE, where the stock opened at Rs 816, then jumped 2.16 per cent to Rs 818.80, its 52-week high level in morning trade.