2016 has been a rough year for the Indian stock market. Over 90% of the shares finding it hard to gain any traction to move skywards.
Towards the end of the first quarter the market was hit by the news of BREXIT. This affected major stock markets all over the world including the Japanese Nikkei and the American NYSE. Throughout the 2nd quarter the Indian stock market continued to be taunted by the after effects of the BREXIT.
There was a short recovery and relief period at the end of the 2nd and the start of the 3rd quarter, where investors thought the storm had passed. Only to find that it was merely the calm before yet another storm.
In the 3rd quarter of the year the world had its eyes set on the US presidential elections. Donald Trump pulled the rug out from under Hillary Clinton to become the oldest president of the United States. And the Indian markets once again started slipping.
Amidst the chaos, the Indian Prime Minister, Narendra Modi, issued the demonetization policy which led to the ban of both Rs.1000 and 500 notes in the country. If you are an Indian, you have already heard and seen enough of it. If you aren’t, feel free to read it on the Times of India site. With the implementation of the demonetization Policy most sector have seen record lows in their sales numbers. The sectors that have seen the highest damage are cement, real estate and automobile.
Although the first 3 quarters have been very bleak the new year wishes of investors seem to have been granted. The first week of Q4 has seen rapid recovery in prices of most shares. And most companies expect sales to continue increasing as the flow of cash in the Indian economy returns the normal.
Unless there is another apocalyptic event that Strikes, the current quarter is most likely to be the most profitable one of the year for companies, investors and of course their omnipresent brokers.