Government of India stunned Indian Citizens to Global investor by pulling 86% of the floating currency bill out of the system. GoI assured that it will help government to fight against corruption, Black Money, Terror Funding and many more which will also help to develop more confidence among foreign investors about India.
The move cracked the market and major correction happened. The economic movement completely got stalled in the absence of currency availability. It impacted India Industrial and Servicing sector badly and it went into contraction. It is expected that most of the company will come out with very bad Oct -Dec 2016 quarter & the fear is impacting share price of most of the companies.
Voltas corrected around 28% being number one in AC market. Ashok Leyland, Escorts, Tata Motors, HSIL,India Cement,Ambuja Cement are some of the companies got the beating. Indian economy will surpass all parameter once the impact of Demonetization gets subside. Being a huge consumer base and complete disruptive in demand for more or less 3 months will ignite new orders once currency comes into play.
It is advisable to those investor who missed the first phase of Indian equity market to enter at much lower price point but the investment should be for long term to mitigate any taxes on booked profits.
One may look at commodity oriented stocks too which will see further upside in quarters to come.
Disclaimer: Consult your financial advisor before investing
Related Stories "-
0 comments:
Post a Comment