500/1000- impact on sectors

Real Estate will be one of the most affected sectors. Everyone believes the same and hence the Nifty Realty Index closed at 175.2, down 11.60%.It is a popular bet in the fresh and resale market dominated by black money holders. The number of buyers will come down and low demand will bring about lower prices in the short term. However, it will subsequently help in improving the sector’s prospects. Unorganised builders will be most affected and the sector will drag down cement and ceramic sectors also along with it.

Gold prices: As investors rushed to invest in safe havens, Gold Futures touched a high of Rs31,376 and was trading at Rs30,500 up 2% on Wednesday evening. Local shops have stopped selling gold in exchange of old notes and prevailing prices are Rs31,800 per 10gm against Rs30,700 per 10gm on Tuesday. The Indian jewellery market will be the worst hit with the ban on Rs500 and Rs1000 currency notes. This is due to the preference of shoppers to pay amounts over Rs2 lakh in cash.

Banks: Banks are the back bone of this entire process and also the biggest beneficiaries. Post complete exchange of currencies, banks should benefit from higher deposits and transaction volumes, lower cash handling costs and greater acceptance of digital channels. There are likely to be secondary benefits for the insurance, asset/wealth management companies through higher financial savings.

Entertainment/Restaurants: One of the most common areas, where undisclosed income is utilised, is the entertainment and restaurant industry. There are plenty of restaurants out there that accept Credit and Debit Cards. Since a majority of the transactions are in cash form in here, it will be exciting to see how people react to it.

Beauty parlours: This has been a booming industry that works largely on cash. In the past few years, beauty parlours have mushroomed on almost every street of urban and semi-urban India. Although a few of the larger, organised parlours do accept credit and debit card payments, most parlours transact mainly in cash because it is often seen as a luxury spending fuelled by unaccounted income.

Tourism: Favourite foreign Tourist Destinations of Indian people like Thailand, Singapore, Malaysia, Maldives, Hawaii, Vietnam, Sri Lanka, Nepal, China, Indonesia and Dubai will see negative impact in tourism revenues all black money sponsored trips will come to a halt. Indian Local Tourism will also get affected as they lose large chunks of the pay-in-cash-only clientele. Illegal foreign currency conversion is also reported to be badly hit, because they were big acceptors of Rs500 and Rs1000 denomination currency.

Luxury items will have a drastic negative impact. Majority of the people spend their undeclared income on such products. After the decision, it is likely that all luxury segments like clothing, electronics, luxury car, furnishing and allied business will take a hit. Media and hospitality industries are also likely to get affected. more  

View all 24 comments Below 24 comments
Politician will use all their class 3 & 4 employee to deposit cash in their account, govt must keep a close watch on such accounts. more  
Yes this has been happening in Bangalore too but not only at the railway stations; elsewhere too. Petrol bunks don't fill in petrol for about 200 and give you change either - you have to fill in for 500! more  
RB is affected. those who has registered their property at low value and taken cash in left hand are also in the fray. Henceforth they will receive in yellow/white metal, in tour packages. there will be a barter economy soon.....Employee will only issue 'coupon' .....not money......like in LIC...absenteeism will be least. Like in Services/BRO they can not think without Canteen. Assam Govt had ordered to provide rations to tea garden workers. What Amma does India follows.....now she is well and had come out of hospital. Like Kerala CM, she has not demanded anything to Center. On Sun, Nov 13, 2016 at 11:05 AM, Ajay Shah wrote: > more  
Yes, there some sectors would have positive effect, others would have negative effect. The ones where the negative effect would be seen would be more to do with those who want don't want to pay tax, want to take short cuts to get their work done, don't want to disclose their wealth etc. etc. This is good for the country. more  
Yes so many sectors affected also people r these people genuine in accumulating money yes billionaires r not in q made some 10000 scapegoat good one person who not releasing money of 1 crore now using his labour or students making conversion with commission these people making money good , another y renewal of Chanel's per year it should be per week more  
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