Is Indian financial market affected by demonetization ??

Demonetization is a move of stripping away legal value of a particular currency. This move can be taken because of several reasons like issue of new currency , need to replace old currency with new ones , control inflation . Indian government has recently taken this move to pull out the black money from its citizens . It is more then a week now and people are still in dilemma . Some are supporting this move and some are not.Indian share market is greatly affected because of this move of government. As we know share market discounts every information and this is something really big.Many traders are withdrawing their funds from the market because of fear. But this is a very wrong move. They can seek advise from financial advisory services providers to deal with this situation in a better way.

Almost everyone is talking about demonetization. And this is something really big which has hit Indian economy in recent years.For that reason it is a matter of conce
for traders as well.The day after demonetization was announced share market went off by 1689 points.To an addition victory of Donald trump in U.S elections made market more volatile.

How sectors, stocks, economy will be affected because of demonetization is discussed below :

1)Pharmaceutical Sector : A day after the Indian government made the announcement of demonetization of Rs500 and Rs 1000 pharmaceutical industry got huge benefit.As many chemists were accepting these old currencies for few days. Surely it will end up earning good profit in the next quater.

2)Banking Sector: This is the sector which is definitely going to be the most benefited sector among all.No doubt a lot of money will flow into banks which will be a little more in public sector banks.Also private sectors banks will be benefited .

3)Precious metals:
Prices of gold rose suddenly after the demonetization. Also number of buyers for it increased. Mostly people were trying to convert their currencies into gold to be on the safer side.As they can buy gold today and sell it later to liquidate it back to money. Liquidity crisis can anytime be solved with the help of purchased gold.However they are ready to pay much more price for it at present to buy .

4)Information Technology sector :
Stocks of Information technology sector was not much affected because of demonetization. They fell by 3% after the announcement was made but other then this no major changes in its stocks can be witnessed.

5)Non Banking Financial Company's(NBFCs):

NBFCs will definitely have impact of demonetizations. However impact here will be for a shorter period of time. They will have more positive effect then negative.As higher transparency will boost up investors confidence in them.

6)Real Estate :

Home prices will fall to large extent as a result of demonetization.And it may take decades to take back its previous highs.Many real estate companies are already under pressure.These companies may take years to recover from this.
The impact of demonetization on share market will fade away with time and in future traders can see more advantages then disadvantages of demonetization in share market.To take maximum benefits from share market , experts recommended stock tips and other stock market trading tips can help a lot.As when market is not under favorable condition traders often panic and take wrong decisions.Consulting a financial consultant can help to face this situation in a wise manner.