What would be the effect of scrapping of Rs. 500/- and Rs. 1000/- notes on stock market?
Based on our Prime Minister's scrapping of Rs.500 and Rs.1000 notes how will the share market progress? After the rejection of 1000 and 500 rupee notes, shall anyone buy shares in this market?
Yesterday night our Prime Minister has announced that the currency notes of denominations of Rs. 500/0 and Rs. 1000/- has been scrapped. The bank will be closed today ( 9.11.2016) for public. The ATMs are closed today. Tomorrow (10.11.2016) also most of the ATMs will remain shut. This has been done to check black money, corruption and terror financing.
But I would like to know how would the share market behave today (9.11.2016) and tomorrow (10.11.2016) after this historic announcement? Will the market react negatively? If yes, then how much correction can be expected? Can it be taken as buying opportunity?
Experts may kindly guide.