Indian Equity Market is going through the rough patch. I dedicate the rough patch to Demonetisation of 500 & 1000 currency bill. Till 7th Nov 2016, most of the equity market analyst were positive about the market. Post 8th Nov 2016, Indian Equity Market started moving downwards with higher volatility. Demonetisation brought all business activity to standstill and consumer centric companies are specially facing the heat of the move by GoI.
FII'S relentless selling in equity market & bond market started playing major factor in margin game which led to volatility. As investor will be busy in realigning their portfolio to book losses and profit till 31st Dec in order to save on tax and strong positioning for 2017. The transition from FY17 to FY 18 will see very high volatility which we started observing in the last few days and it will continue well into first week of Jan 2017.
It is recommended that buyers should stay away from entering into equity market till companies come out of their Oct-Dec 2016 quarter which is expected to be horrible.It's time to hold on to good equity which is in investor kitty and wait till next year June to enable the economy to recover from Demonetization shock and stabilisation of their earning.
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