Decoding Demonetisation in DSIJ Way: Sectors to be Impacted

Karan Bhojwani identifies nine prime sectors and how each of these is going to be impacted in the post-demonetisation days. After a detail analysis and also speaking to market experts, he finds all is not so gloomy even if fear persists among retail investors.

- Karan Bhojwani

It was a typical Tuesday evening—second day of the week and people had just come back from work and surfing through television channels. Most of the news channels were showing Prime Minister of the country talking live but most of the viewers did not even find it unusual in an usual Tuesday evening till they heard, “so I am saying the notes of ₹500 and ₹1000 are now being scrapped.” These very words coming from Narendra Modi snatched away sleep for millions, billions found themselves then and there falling prey to anxiety, some were even dumbstuck. India was gripped in fear, panic, trauma, anxiety by the time clock struck 9pm. In a desperate attempt to curb black money menace, country’s Prime Minister opted for an extreme step, scrapped two high denomination notes. Next morning onwards till the time of filing this report, stock markets started falling almost every session during the first 15 days since the announcement. Global cues were not taken, only cues related to demonetisation were read by the markets even as the country witnesses unprecedented cash crunch, queues outside ATMs, branches of all the banks, rise of payment banks, mobile wallets and even the neighbourhood tea-stall vendor putting up signboards of a popular mobile wallet entity. India started witnessing a very fast change, for good or bad—time will respond to this billion dollar question but for now, it is 50:50. A big objective to achieve, poll promises to deliver looking at polls at three key states including Uttar Pradesh, some pain for major gain screamed some people on social media, some whispered it all had been happening for some vested interests. Some started talking about new currency notes with nano GPS chips, some even clicked selfies with the new ₹2000 currencies, Youtube videos on colour falling ₹2000 notes became viral. Demonetisation almost overnight became the most popular or even unpopular word in the dictionary of all Indians. Whether his Operation