Financial Market @ November 2016

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.