The booming economy of India came to standstill on 8th Nov 2016, the moment Honorable Prime Minister of India Narendra Modi announced discontinuation of 500 and 1000 currency bills.The consumer goods, Electrical, Infrastructure to many other sector went through the shock waves as order dried down. Small and medium sized companies experienced shortage of labor to raw materials due to lack of currency flow. The economic indicators like IPP went into contraction. WPI and CPI went for free fall. Foreign Institutional Investors went for sell in equity and bond segment which triggered fall in Indian currencies.
Electronics related companies such as Smartphone segment announced delayed shipment, firing of thousand of employees indicated that economy is in standstill as even 4000 smartphone sells dried down. The cap of cash withdraw forced consumer to stay away from shipping whole consumer fought tough time due to cash crunch.
Given all the negative scenario in most of the industrial sector, it is expected that most of the Indian Companies will come out with very bad Oct-Dec 2016 Quarter. It will offer great opportunity for investor. Stay tuned as I will posting the same soon.
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