MUMBAI: The impact of demonetisation on the economy, investment cycle and earnings will not be significant, Japanese financial services firm Nomura said in a report.Nomura has projected about 20% returns for the Sensex by the end of 2017 as multiples are likely to rise with normalising growth. The equity market tumbled after that but has since gained momentum and is now back to pre-demonetisation levels. In a separate report, Nomura said the rising currency in circulation to 6.5% of GDP as of January 20 from an all-time low of 5.9% on January 6 points to good progress in remonetisation. Currency in circulation was at 11.8% of GDP on November 4, before the demonetisation. Nomura expects currency-to-GDP ratio to rise to about 9% by March-end.Nomura also said that the government is unlikely to take a populist stance in the upcoming Union Budget on February 1.

Source: Economic Times January 26, 2017 16:16 UTC