Confirming fears of demonetisation move hitting growth, Japanese brokerage Nomura on Wednesday said its proprietary indices have dipped to the lowest levels since 1996, with rural consumption showing the maximum impact.


"Our proprietary indicators suggest sharper near-term slowdown after the demonetisation,' it said, adding that while the slowdown is only partially visible in the November data prints, the full growth impact is likely to be seen only in the December data.


The report said the demonetisation move has hit rural consumption demand harder than the urban demand.The Nomura Composite Leading Index (CLI) for India for early 2017 has slumped to the lowest level since the series began in 1996 and is consistent with GDP growth of below 6%, it said.


"This suggests that there is downside risk to our Q1 growth projection of 6.9%, that is near-term growth may fall much more than expected," it said.