India can take historic decisions ... Demonetisation

An Economic Revolution We have shown to the world That India can take historic decisions 

Short term effect - Negative 

. Time Was Too Short To Implement 

. Slow Down Of Consumer Spending 

. Major Disruption – Real Estate , Branded Items, Textiles , Gems and Jewellery, Entertainment and Luxury 

. GDP Growth Will Be Affected In Next Two Quarters 

RBI Stands To Make A Windfall Gain

Out of 14 Lakh Crores of 500/1000 Notes, it is estimated that notes worth 5 Lakh Crores will not be deposited / exchanged in the bank, reducing the liability of RBI by whopping 5 Lakh Crores


Tax Revenue To Go Up Substantially

Money transferred to bank Rs. 7 Lakh Crores ----> Rs. 7 Lakh Crores comes into circulation ---->
Majority of this funds will be utilized for business purpose which will come into tax net ---->
Tax collection to go up substantially


Massive Deposits With The Banks

Money transferred to bank Rs. 7 Lakh Crores ----> Cash Money circulation to reduce substantially lowering the inflation ----> Banks will have space to reduce the interest rate remarkably ---->
Corporate India and individual borrowers will stand to gain meaningfully affecting the bottom line positively


Biggest Economic Stimulus!


7 Lakh Crores transferred from unproductive use to productive use ----> More people will fall in productive channel automatically ----> Organized sector of all segments of economy will stand
to gain ----> More tax collection, lower interest rate, lower inflation = strong currency


Impact On Asset Classes – Equity The Biggest Gainer In Long Term


Bonds - Interest Rate to fall 1.5 – 2 % . Fall in Govt. Deficit & Inflation

Real Estate – 20 – 30 % Drop – No cash component - will evaporate values

Gold – Neutral to negative - Lower Black money to Depress Demand

Equity– Biggest beneficiary with fall in investment in physical assets


Thanks …

Happy investing