The 8th November 2016 will be one sure nomination for most stagy show day in the history. Garnishing the fact, two things happened that day which had some significant global impact. The forenoon was staged with a most mindboggling coup in the history of US presidential election, toppling the predictions Donald J trump became the presidential candidate for 45th chair. Fantasized, thrilled and recuperating there came the next blast from Indian Prime Minister Narendra Modi in the warmth of dusk announcing the demonetization of 500 & 1000 currencies notes. Startled, many didn’t understand what happened on that day, but finally caught up the in news very next day to realize that the country had launched its first missile against black money & corruption. It took a while for many to understand the impact of two great events on the same day in two different part of the world.
Equities: 8th of November wasn’t spared to feel the heat of demonetization and election result. In fact, 9th faced some bewildering array of events throughout the world, especially in the stock market. The BSE Sensex commenced the day with a huge 1300 point loss, which astonishingly recovered in the repercussion of the previous day. The shockwave propelled to 10th of November with a reported 700 point gain in the light of previous 2 days market drama.
Gold: When the currency starts to look alike a piece of printed paper, many thought of converting them to gold, which they believed will be a much safer option. This created a huge spike in the market demand for gold, which obviously reflected as hiked price for around 4 days past the announcement. Many expert reviews revolved around gold to be an easy option to get through.
Debt Market: The indirect tie-up made a stable platform for rupee in the light of Trump’s victory, which carried the same way for some days as such when Indian government demonetized the denominations. Many economists anticipated a diminished inflationary pressure in the market, but believe that it would help the investors with rate cuts.
Real Estate: There is both good news as well as bad news from real estate. The bad news is that, though the election results didn’t do much to real-estate (at least not in India) but did demonetization, which gave a massive knockback to many investors! It was a fact that real estate was the vault for black money circulation, which now has to come back to earth and dig the black money out. The good news is with ordinary people! A humongous heap of illegal revenue will be flushed down to the economy to benefit ordinary citizen, at the same time a layman’s dream of foot space will be fulfilled because the boomed up land prices are now back what they were supposed to be !
Launders: Small scale money launders were marching to and fro among people exploiting the short term confusions. But ultimately they found themselves in a bottleneck situation, where many dropped the strategy. Whereas the large scale underground shadows felt helpless with a pile of printed papers, as they couldn’t find a proper pipeline to exchange the money.
Commodities & necessities: All on a sudden the demand for certain commodities and necessities augmented. The nippy demonetization made a confusion such that, many people thought of getting rid of 500 & 1000 from their hand, thinking it might turn useless a day after. Petrol pumps, lottery sellers, gold vendors, supermarkets, etc. experienced a rush on the night of 8th which eventually took off when the public realized the situation.