Effect of demonetisation on companies

i am accumulating slowly SBI only in PSU banks

 

Yes correct sir

 

@New_Investor , would you know what the banks are doing with all these huge deposits?

 

Markets are roaring again.
Looks like the panic selling after demonetisation was the best time to pick stocks.
I wonder if we will now get those levels again to make some investments. I feel like having missed the bus.

 

In my view Financial years 2018-2019 Indian GDP Growth move rapidly

 

I am also getting same feeling. Bus is missed All stocks are shooting up now. We should bought heavily when market was down.

 

Do not loose heart guys. Market will keep on throwing such opportunities. We need to take quick decision and not wait for the bottom.

 

Dear Manmohanji,
I think this is too early to say market is roaring back .
Effects of demonetization will be felt during Jan results . Also we do not know if some big bulls in US wake up to the reality after enjoying xmas .

Thanks & Regards,
Prashant

 

Dear Manmohanji,
I think this is too early to say market is roaring back .
Effects of demonetization will be felt during Jan results . Also we do not know if some big bulls in US wake up to the reality after enjoying xmas .

Thanks & Regards,
Prashant

 

Watch out for FOMC meeting which is on 13th, 14th Dec 2016. If Fed hikes the rate you might get the bus again.

 

Isnt a Fed hike a good sign?

 

yes, if FED rate hike 25 basis points less damage to our stock market ,
If FED rate hike 50 basis points high damage to our stock market

 

Check out this article. It's almost 1 year old but can be applied today also.

https://economictimes.indiatimes.co...d-rate-hike-may-mean/articleshow/50178657.cms

 

So I suppose the RBI has now partially answered my question... something I was waiting for from some experts in here. With the CRR move, banks will have to maintain an additional CRR of Rs3.2 lac crore with RBI and CRR is a drag on the bank's profitability. Temporary the RBI says but looks like the huge deposits gathered by the banks are turning out to be a headache to banks - I mean are'nt improving financial health of banks, also given the poor credit offtake.

Experts please do correct any misreading of the situation by me.

 

Wow sir your clarity of thinking on banks is very good. You seem to be an expert.
Can you pls guide us as to what impact the CRR hike will have on the results of the banks. I mean on public and private banks both.

 

Oh I am certainly not an expert - whether in stock investing or banking specifically.
I too am actually looking for answers myself from the likes of @RAMA MURTHY SASTRY CHALLA , @kharb , @New_Investor ,@Srouta Mukherjee, @BombayBoy etc

 

At present main problem in India is replacement of old Rs. 500 & 1000 notes slow down
in total 14.5 Lakh crores (Approximately old 500and 1000 notes value )
in that 8.11 Lakh crores deposited in Banks and post offices
remaining 6.39 Lakh crores are not circulated in market
all denominations together value in India Rs. 74 Lakh crores (approx)

at present RBI is not having 8.11 lakh crore worth notes that is equal to deposited amount
so and another problem is issuing Rs. 2000 note , problem solved after replace all deposited amount with the banks, After all 500 below notes worth 8.11 crores minting only total problem will be solved

so RBI restricted with limited withdrawal amount .....
in my view this problem will solved totally after printing all notes equally deposited amount
and that money is not deposited for long term it will withdraw by people after lifting restrictions on withdrawals

THIS CHAIN OF MONEY CIRCULATION IS DISTURBED SO AGAIN REACHED THAT LEVEL IT WILL TAKE TIME ..... UNTIL SALES WILL BE EFFECTED EXCEPT SOME LOW IMPACT ON " PHARMA " AND "POWER " SECTORS I THINK

banks CRR loss is temporary , and digitalisation improvement in India is useful for banks they will get service charges with out any investment ...

my view is if government charges service charges on digitalized payments is not correct ... if they want to improve india in that direction they will not charge service charges on transactions that is moral ....
BUT THIS GOVERNMENT MAJOR STEP IS EXCELLENT FOR INDIA FUTURE
MY EXPECTATION IS INDIAN GDP GROWTH AFTER FINANCIAL YEAR 2018 WILL IMPROVE RAPIDLY

JAI BHARAT

 

I really hope wish and pray that your prediction about our nation's growth in the coming years comes true.
Can you kindly pick some sectors/stocks which we can buy for the next 2-3 years to take benefit of the GDP growth in coming years? Thanks and regards

 

in my view i am bullish on sectors like " Banking , cement , pharma , construction equipment , Automobile (2 wheeler ), Industrial Manufacturing , FMCG " for long term investment

 

A few questions
- what is the 74lac crore you mention? I thought 14.5lac crores represented 86% of MIC
- why should the problem be solved only when all the 14.5 lac crore be remonitised? I would think the cash required for daily needs (business and personal) once in circulation should get the economy back on its feet
- do you think it could be a bit early to put a time frame on by when the GDP will start growing? Surely we dont still know what the other measures are and their impact on the economy
- you mention that the CRR loss is temporary. I was told that CRR is a loss making. Is this the case? Can you eleborate how and why banks incur loss on CRR

Thanks in advance