The market reacts more to the way the economy is moving. “While there has been volatility since March, we have been waiting for this upswing to happen, ever since demonetisation took place. Lifestyle demand and consumption demand got interrupted because of demonetisation and in supply interruptions that came in the wake of GST implementation,” said Ashutosh Bishnoi, managing director and CEO, Mahindra Mutual Fund.
“All of that is now normalising and what we are seeing now is not a surprise. This should have happened some time ago. It is playing catch up now but the important thing is it is happening. We are seeing a lot of lifestyle consumption related demand coming in. Obviously, that shows up in the earnings pretty soon. I guess a lot of market players sense that already and you are seeing valuations creep up in those counters,” Bishnoi observed.
In November 2017, a year after the Modi government announced the demonetisation of high value currency notes, Anil Bokil of ArthaKranti Prathisthan, the organisation that many believe influenced th
Demonetisation has positive impact on the mutual fund industry as money moved from banks to mutual funds as the time investor confidence was high and Indian macros were improving.
Two years ago, on November 8, 2016 prime minister Narendra Modi announced demonetisation to arrest black money in the economy.