The severe cold has been subdued in my city of Bangalore, the weather is a bit pleasant today.Markets are not that pleasant the Nifty dropped by 28 points to 8153 and the sensex dropped by 83 points to 26519. The Federal Reserve raised the interest rates and this led to the markets down in India and the Rupee becoming weak. Generally all stocks have come down. Banks have gained in principle due to demonetisation as a lot of deposits have flown to banks, thereby raising treasury incomes.

A lot of foreign selling has taken place supported by domestic financial institutions to prop up markets. But still, markets are dull. The effect of demonetisation will be there for some more time, taking a lot of time to recover, as people have to get used to a cashless economy which has now thrown many lives out of gear. Demonetisation has got and will get more money into the system. A lot of money with the Government will lead to more spending by the Government thereby,improving the Economy. A lot of Government spending will boost the finances of the people as more jobs will be created leading to creation of wealth. Fmcg, two wheeler, retail, will suffer for sometime due to less cash usaage, Real Estate sector will take a long time to recover as this sector is mainly cash dependent.It is better to book profits periodically. HAPPY TRADING AND INVESTING.