Bears kept complete control over Dalal Street in afternoon as equity benchmarks as well as broader markets were down between 1 percent and 2 percent despite mixed global cues.
Ajay Bodke of Prabhudas Lilladher says the surprise demonetisation move of higher denomination currencies by the government on 8th November 2016 took markets by surprise.
After witnessing a tepid earnings growth for the last few years, markets were looking forward to a return to robust earnings jump in 2H FY17. The optimism stemmed from consumption-focused sectors riding on cash infusion in the economy due to the VII Pay Commission award to Central government employees and OROP to defence personnel (serving & retired) as well as a boost to rural consumption after a near-normal monsoon leading to bumper kharif harvest after two successive years of drought.
