Abstract: The paper entitled above is decent contribution to the investor market to study the impact of investors behavior of demonetization announced in 2016. The total Indian economy had affected in many ways and investors are also having impact of this decision. The paper highlights on positive and negative effect as well as study of changes in market with respect to equity.

Brief about the stock market Since the founding of the Bombay stock exchange, stock markets in India, particularly in Mumbai (BSE and NSE) have seen a number of booms as well as crashes.

This page lists these crashes and sharp falls in the two primary Indian stock markets, namely the BSE and NSE. Financial Times terms a double-digit percentage fall in the stock markets over five minutes as a crash, while Jayadev et al. describe a stock market crash in India as a "fall in the NIFTY of more than 10% within a span of 20 days" or "difference of more than 10% between the high on a day and the low on the next trading day" or "decline in the NIFTY of more than 9% within a span of 5 days". As per the latter definition, the Nifty experienced 15 crashes during the period 2000 to 2008 with a number of them having occurred in the months of January, May and June 2008. On 8th November 2016 ,Hon’ble Prime Minister Narendra Modi announces the demonetization of all Rs.500 and 1000 Currency of Mahatma Gandhi Series .The government under look that action to would curtail the shadow economy to safeguard the Indian financial system and to vanish the use of illicit and illegally authenticated funds for cash ,anti social activity and terrorism. The sudden announcement from Government of India and improper management of cash shortages in the entire economy for few days created high disruption ,which threatened the routine business which created impact on the economic output .The move was indigestible and was highly criticized because of poor planning for needy requirement .When the announcement of demonetization took place officially the BSE SENSEX and NIFTY 50 stock indices fell over 6% where the people focus was on their present maintenance rather than focusing on other investment avenue which even led to have reduced country’s GDP and industrial production .This paper tries to explains before and after effect of notes ban in the country which created a tremendous changes in the people’s lifestyle and life management which in turn also shows it has affected the performance of various stocks in the equity market.

| DOI: 10.17148/IARJSET.2022.91017