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Cash-heavy sectors (Real Estate, Jewellery, Retail) fall 10-20%. Digital payment companies surge. Banking sees short-term deposit inflows but NPAs rise later. Structural reforms cause 4-6% Nifty correction then recovery in 3-4 months.
Nifty 1 Day
-1.5%
Nifty 3 Days
-5.2%
Nifty 1 Week
-6.0%
Nifty 1 Month
-4.2%
PM Modi announced withdrawal of ₹500 and ₹1000 notes on national TV at 8 PM on November 8, 2016. 86% of currency in circulation was demonetized overnight. Markets fell 6% in 1 week as economic disruption spread.
Real estate transactions froze — cash-heavy sector
Jewellery purchases collapse — high cash dependency
Consumer discretionary cash spending frozen
PM Modi announced withdrawal of ₹500 and ₹1000 notes on national TV at 8 PM on November 8, 2016. 86% of currency in circulation was demonetized overnight. Markets fell 6% in 1 week as economic disruption spread.
Historically, Paytm, Infosys, SBI were among the strongest performers in the aftermath, based on real 1-week/1-month return data.
The Nifty 50 moved -6.0% in the following week and -4.2% over the following month.
Cash-heavy sectors (Real Estate, Jewellery, Retail) fall 10-20%. Digital payment companies surge. Banking sees short-term deposit inflows but NPAs rise later. Structural reforms cause 4-6% Nifty correction then recovery in 3-4 months.
Regime
bull
Repo Rate
6.25%
India VIX
17.8
Data Confidence
95%