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    ARTICLE 370 AND STOCK MARKET

    Uploaded Date 12-Aug-19
    article 370

    Now that article 370 has been scrapped of the Indian Constitution, almost all the sectors of India presume growth. The ripple of this will be seen in the stock market as well, so with the help of stock market tips by Shyam Advisory, you can make use of the movement.


    Through this change, it is not just the life of people, but many business aspects seem to change now. Some of the major changes are:


    •    The reservation policy will get change in Jammu and Kashmir. Now People of SC/STs/Minority communities will get a reservation in Government jobs and admission in colleges and Universities.


    •    People from outside states and countries can offer a business solution in Jammu, Kashmir, and Ladakh.


    •    Kashmir will now move towards industrialization and urbanization under the Indian laws.


    And some of these changes started appearing in the market as soon as article 370 revoked. The scrapping of article 370 positively influenced the stock market. Talking about the same Rajiv Singh, CEO at Karvy Stock Broking said, "The government has displayed strong political will and decisiveness to take difficult decisions, to fulfill one of its poll promises related to J&K. We hope that the government will display similar commitment while acting on the economy to improve both its short term as well as long term prospects. We expect that Government will take similar bold moves in case of addressing economic slowdown, recent taxation measures which have dampened sentiment and go ahead with difficult legislations on land reforms, labor reforms and privatization of PSUs."


    It can be seen that the market has accepted this decision so well. The Sensex has gone up and the share market is doing very good. This is the best time to get hold of this rally with the help of effective stock market tips by Shyam Advisory. The Nifty is supposed to stay within the range of 10,500 to 11,200 in the near term. India Now sees more Business opportunities than before. Now that outsiders can buy land in J&K, many more MNC can set up a plant there. All this leads to a stronger economy. Thus, scrapping of article 370 has opened the door for progress in India. The market will get affected when the development starts, hence, stock market tips by Shyam Advisory will help traders to maximize their returns.


    Talking about the effect of revoke of 370 in India, Rajiv Singh said: "although "one nation, one law" has a short term negative impact on the market, there are larger reasons for the decline today. Asian markets have declined sharply in the morning, largely because of the Chinese currency depreciating past the important mark of 7 to the Dollar; S&P 500 futures imply a 1 percent decline at the time of writing."


    Thus the Indian market now expects stronger Sensex and Nifty. The downside now seems to be limited. Dalal Street recovery Prakash Pandey, Head of Research at Fairwealth Securities, speaking on the revoke of article 370, said, "The Narendra Modi government's move to scrap article 370 in J&K by proposing the J&K Reorganisation Bill has gone down well among the stock market investors and incoming three-four trade sessions, we can expect around 300-400 points recovery at Nifty. But, before making such recovery Nifty will first make a low and then start scaling as we witnessed post-Pulwama airstrikes."


    It won't be wrong to say that the recovery of 300-400 points means a stronger market. The investor seems to be very happy with this news as it is paving a way for them to get a good return on their money. Also, it is believed that expenditure in the state defense which was around Rs 1 lakh crore would go down. This will lead to a controlled fiscal deficit. All in all the economy of India now seems to grow stronger and faster. However, the Chinese currency's performance is still a great deciding factor.


    Happy Trading!


    If you want to avail the services of stock market tips, please contact Shyam Advisory.