Demonetization difficulties are temporary, Markets will be able to pick up

INDORE, India - Nov. 17, 2016 - PRLog -- Subsequent on  the demonetization move and the US presidency selection, the BSE Sensex opened with a massive loss of 1,300 points, but it recovered in a while. On Wednesday, 16th November 2017, the crash of BSE index to a five-month low level of 26,298.  It resulted a loss of 3 lakh crores in the market capitalization.

On Tuesday, however, the market breached 514 points or 2%  since investors sold off stocks fearing that demonetization may get affected to a sharp fall in consumption in different sectors like Fast Moving Consumer Goods, real estate,  cement, steel and some more. In view of this,  as per the genuine analysis, it concludes that  obviously a sharp fall was expected in the short run, but there is no need for any undue hopelessness. Sensex plunge should prove to be a temporary experience. The market will be able to pick up.

There was also the US factor with the surprising election of Donald Trump as President, challenging most opinion polls which had predicted a victory of Hillary Clinton. The American media projected a  terrible consequences if Donald Trump was nominated President, then there was a gloom in the US markets.

In India, the fund depletes with the ambiguity in the Indian markets and the climate of grim predicting in the US combined to drive down key stocks. The rupee market was also hard pressed with the rupee down 57 paisa with a 5-month low of Rs 67.82 against the US currency.

In the light of the above factors, the Indian market plunge would only be a short-term or  temporary phenomenon. Markets will be able to pick up and should return to their pre-demonetization levels in the coming six months and to move forward further. The economy will be flourished in near future.

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