Reawakening
of Tiger called India
The move to ban
high-denomination notes is expected to dent immediate consumption in the medium-term,
but will have a positive impact on growth and inflation in the long run. This
move is also deflationary as the currency in circulation comes down for a while
the spending power or consumption will reduce. Lesser amount of economic
activities is expected in next 6 to 8 months of time frame.
There will be lesser
action seen on the bourses, right time to balance your portfolio. Debt funds as
always better options than any of the debt product available in market. It will
benefit the most with the expected rate cuts by RBI in next one year to the
tune of 50 basis point.
Investment from long
term perspective should start participating in equity distributing their
investible surplus judiciously over next 6 to 8 month time frame.
Economic prospects
never looked so strong in India before, since Independence. There will be initial
corrections on account of slowing down of economy but much is expected from the
FDI participation and offshore investments in due course of time.
