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Stocks benefitted by demonetization

Discussion in 'Investment Analysis' started by caringvij, Dec 1, 2016.

  1. caringvij

    caringvij Active Member

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    caringvij, Dec 1, 2016
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  2. sethuramcbe

    sethuramcbe Responder

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    apart fro payment gateway software compnay
    RS software - Could be benefitted but i dont like this company

    This will be a short term gain may be 1-2 qtr profit,look for company good in financials impacted by demonetization and buy them in 1 year ppl will forget abt today :)
     
    sethuramcbe, Dec 1, 2016
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  3. nilesh66in

    nilesh66in New Member

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    As cashless transactions will be on the rise, company providing SMS services will be in great demand, for eg Tanla solutions.
     
    nilesh66in, Dec 2, 2016
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  4. nirajshah

    nirajshah Champion

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    I don't buy the fact that demonetization can drive people to cashless transaction. As cash crunch eases it will be back to square one. You cannot force people to cashless economy and it should be willingness of people to transact cashless.

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    nirajshah, Dec 2, 2016
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  5. sethuramcbe

    sethuramcbe Responder

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    focus on quality , good governance, value etc rather than an 2-4 months problem.
     
    sethuramcbe, Dec 2, 2016
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  6. shabbir

    shabbir Administrator Staff Member

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    Maruti Suzuki looks awesome as they had best Nov sales number despite demonetization.
     
    shabbir, Dec 2, 2016
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  7. bhat64

    bhat64 Apprentice

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    Personally my view is a long term investor shouldn't pick stocks based on demonitization effects etc. Short term investors can may be. Demonitization today will fade away and then remonetisation will be the talk around. After that something else will be hot topic. Quality companies will have a moat around them; and will keep them going. Invest in such companies that you understand their products biz model etc and don't get carried away by the media hype.


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    bhat64, Dec 2, 2016
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  8. bhat64

    bhat64 Apprentice

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    bhat64, Dec 2, 2016
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  9. shabbir

    shabbir Administrator Staff Member

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    Exactly and use this as an opportunity to invest but I see first half of 2017 will be good investing opportunity.
    (Y)
     
    shabbir, Dec 3, 2016
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  10. bhat64

    bhat64 Apprentice

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    @ Shabbir, can you educate this group on the factors your considering to see 2017 first half being good time


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    bhat64, Dec 3, 2016
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  11. shabbir

    shabbir Administrator Staff Member

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    I consider it to be the bad time and not good time and why is shared here - http://shabbir.in/portfolio-report-december-2016/

    There are too many reasons for things to be bad and I will re-write them here
    1. Demonetization which I think is short lived for now but then not as short-lived as to be over in 2016.
    2. Donald Trump who would work on US growth factors which can mean equity market in US will have more fund inflows
    3. US Fed rate hikes can mean money flowing out of EM to US.
    4. Bad results of Indian companies being reported in Jan and possibly in April as well due to after effect of demonetization
    5. Other bad numbers being reported like GDP and IIP and other such factors.
    So this would mean 2017 will be bad for market but

    I think this will be good time to be investing as well. So much uncertainty means market will be in no hurry to move higher and so it is bound to correct.
     
    shabbir, Dec 3, 2016
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