Here’s what India’s top market investors think about demonetisation

Rakesh Jhunjhunwala, who is known as bull of the Dalal Street, said ill-effects of demonetisation will taper down by December and suggested people should trade in stocks only as full-time investors, or else park the money with mutual funds. Demonetisation will bring 30-40 per cent dormant money into banks. He said the economy will bounce bank much faster.

He said Modi's demonetization drive is a huge lab experiment which will hit large and small cap stocks hard and wipe out the bull run in the market. He said the cash squeeze will certainly hurt growth to some extent in the short term, but in the long run, it will be positive for India's structural story.

Veliyath said demonetisation won't stop corruption and black money, but it's one of the steps (the only one painful to every citizen) initiated by the nation. Veliyath said demonetisation will bring in 20 years of gain. It is a rare opportunity to pick value bets in Indian equity market.

Nimesh Shah termed demonetisation as a good step in the long run. “However, given the size of the cash economy in India, a step like demonetisation could result in some short-term problems,” he said.