New Delhi, April 28 -- India's weakest monsoon forecast in 26 years hasn't rattled Dalal Street much, raising the risk that investors are underpricing pockets of stress.

The India Meteorological Department's (IMD) first estimate pegs 2026 rainfall at 92% of the long-period average (LPA), flagging chances of below-normal precipitation. Amid persistent foreign investor outflows, elevated crude prices and patchy earnings, monsoon risks are being seen as incremental.

However, experts caution that a weak monsoon could choke farm cash flows, dampen rural credit demand, and sour asset quality before broader consumption trends buckle.

Non-banking financial companies (NBFCs) with exposure to vehicle loans and micro, small, and medium enterprise...