The 9th of November turned out to be an unusual day for the Indian markets. Two events have unfolded – The US presidential election outcome and the demonetisation of 500 and 1000 rupee notes. BSE Sensex opened down 1600 points and closed the day with a substantial recovery with a loss of 339 points. The announcement of Donald Trump as US President has put to rest the uncertainty of the result. Now one awaits his economic policy announcements. Sectors to benefit would be Oil and Metals.
India, with the demonetisation of the 500 and 1000 rupee notes will infuse huge amount of funds in the banking system thus having a positive impact on the sector. This will also have an adverse effect on real estate and sectors related to it.
Markets are expected to remain volatile in the coming month and it is difficult to predict a bottom. We suggest staggered investments in equity and use these expected volatility to your advantage. Fund categories to consider for investment are #Largecap and #MultiCap Funds. An aggressive strategy would be to increase allocation towards #BankingSectorFunds.
Debt allocation: for a short term period one can consider #dynamic funds. For a 3 year plus horizon, allocate monies to #accrual #debt funds.