Amid Trump correction, demonetisation comes out of syllabus, markets fall free!

It was anticipated that if Donald Trump wins the US Presidential elections the markets are bound to take a nosedive. However, no analyst predicted that the move of the centre to demonetise Rs 500 and Rs 1000 notes would take a hit on the capital markets adversely. Yes, the Sensex has continued its free fall for the sixth consecutive day. In these six days, the BSE Index has lost around 1752 points breaching 26000 mark. Continued selling by foreign institutional investors due to the worries over the economic impact of the government's demonetisation move continued to hurt investor sentiment. 

On the other hand, Nifty ended below 8000 levels for the first time in the last six months. Making things worst the dollar appreciated on November 21 as the rupee fell to Rs 68.27 per dollar. The markets are still in dilemma and confused over the centre's move. The market pundits on the other hand don’t expect the GDP to grow by 7.6 per cent in this fiscal. The selloff has wiped out Sensex’s gains for the calendar year 2016.