Sensex crashes 1,689 points on black money crackdown, US elections
On frantic selling, stock market benchmark BSE Sensex crashed nearly 1,689 points and Nifty plunged by over 541 points on early US election trends showing Donald Trump's lead, while the Indian government's move to withdraw notes of higher denominations cast shadow on cash-focussed sectors.
Consequently, the Sensex nosedived by 1,688.69 points or 6.12 percent to slip below the crucial 26,000-mark to trade at 25,902.45 with all the sectoral indices led by realty, consumer durables and auto tumbling by up to 10.78 percent.
On similar lines, the Nifty dropped 541.30 points, or 6.33 percent, to 8,002.25. Sentiment suffered a jolt following government's surprise move to ban Rs 500 and Rs 1,000 currency notes in a bid to curb black money, triggered all-round selling, dragging down the key indices form their key levels. Besides, meltdown in global equities as polling numbers suggested that market-favoured Hillary Clinton is struggling in her bitter battle against Donald Trump for the US presidency dampened sentiments.
Moreover, the rupee weakening against the US dollar by 23 paise to 66.85 also had a bearing on the sentiment. Most of the 30-Sensex constituents led by M&M, ADani Ports, BhartiAirtel, Bajaj Auto, Hero MotoCorp, ICICI Bank, Sun Pharma, Cipla, HDFC Ltd, ONGC and Hind Unilever were trading in negative terrain, falling by up to 5.77 per cent.
Real estate stocks bore the brunt as the sector is expected to feel the heat of the government's move to phase out of the old Rs 500 and Rs 1,000 currency notes. Major losers were DLF, Sobha Developers, India Bull Real Estate, Godrej Properties, HDIL and Unitech, down by up to 15 per cent. Meanwhile, Brent oil prices too dived 2.65 per cent to 44.82 per barrel in Asian trade.
In Asian region, Hong Kong's Hang Seng tumbled 2.73 percent, Japan's Nikkei down 2.235 percent while Shanghai Composite Index fell 1.32 percent. The US stocks futures S&P plunged 4.45 percent on Wednesday.