Markets were very down today, the Nifty ended below 8000 at 7979 minus 82 points, while the sensex lost 718 points in 7 straight days at 25979 minus 262 points since previous closing. The fears of demonetisation lingers still in the Market. Market is awaiting the December 3rd quarterly results which is expected to be bad. Sales seem to have come down for companies like fmcg, two wheeler as most of these transactions happen in cash. Rural economy is cash economy, most of the two wheeler and fmcg sales take place in rural India, so the market is bad. The problem is people s income inflow has been hit as many were dependent on cash, so buying has come down. Buying, is restricted only to the essentials and the rest is kept in abeyance.
Commodity stocks like steel, zinc, copper might do well as there will be demand for comodities once the Government starts taking up infra structure projects, which will drive prices of these commodities. Banking stocks will do well due to the huge money inflow they have got, which has resulted in huge treasury gains. Lending rates have been stable and banks are awash with funds, so they can lend at competitive rates which will lead to more business for banks. The negative factor is the Federal Reserve which is increasing lending rates which will effect borrowing and the international markets will be effected. Trump the President Elect factor is to be seen as he seems to be Nationalistic in persona and is bothered more about US protection. HAPPY TRADING AND INVESTING.
