Indian Infrastructure segment got the major jolt once Indian
Government announced that all current INR 500 & INR 1000 notes will be
replaced with new INR 500 & 2000 notes. Here we should not forget that
government will keep close watch on deposit by individual or corporate and may
send tax notice if tax department observe discrepancies.
Indian Infrastructure segment including real estate
completely rely on cash transaction be it rolling rods to cement to tiles to
marble.
Most of the ongoing projects to individual planning or
building their own house will come to standstill as INR 500 & 1000 notes
are the main transaction currencies in the segment.
Many traders involved in cement to steel or tiles or marble
segment more or less work through cash transaction to save on taxes and impact
government revenue stream.
The entire cash hoarding by them is penniless and they will
be forced to go to government and face consequences.
The dry out of currencies will slowdown business which will
impact above mentioned segment the most.
The cement to steel to building material companies were on the
upswing but may observe decline and it will be buying opportunity for long term
investor.
Please stay away from future and option market in a market
which is expected to be volatile till March 2017.
Disclaimer: Please consult your financial advisor before
investing.
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Great Article it its really informative and innovative keep us posted with new updates. its was really valuable. thanks a lot.
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