Trump, Modi, send Sensex tumbling

The rupee turmoil also added to the pressure on equities after the domestic currency dropped 28 paise in early trade against the US dollar. 

After days of uneasiness over US election developments, market sentiment was further hit after the government’s announcement of demonetisation of higher value currency notes in a bid to curb the black money menace. Vinod Nair, Head of Research, Geojit BNP Paribas Financial Services Ltd, said, “Market bled on double whammy from the unexpected victory of the Republicans in the US Presidential election and the demonetisation in India. But since morning the market has been recovering led by short covering and bottom fishing due to strong bargain given a sharp gap down of more than 6 per cent.” 

The 30-share Sensex opened gap-down at 26,251.38 and hovered between 27,397.38 and 25,902.45 before settling at 27,252.53, showing a fall of 338.61 points, or 1.23 per cent. The gauge had gained 316.99 points in last two sessions. The Sensex on Wednesday recorded the worst intra-day plunge in nearly 15 months. Its previous biggest single-day fall was 1,741.35 points on August 24, 2015. The NSE Nifty dropped by 111.55 points, or 1.31 per cent, to conclude at 8,432.00, after shuttling between 8,476.20 and 8,002.25. 

An across-the-board unwinding witnessed led by realty 10.23 per cent, followed by consumer durables 4.18 per cent, IT 3.28 per cent, tech 2.84 per cent, auto 2.52 per cent, FMCG 2.11 per cent, industrials 1.64 per cent, power 1.25 per cent, finance 1.23 per cent and telecom 1.22 per cent. 

However, after Trump’s victory the market recouped losses in healthcare, banking and oil & gas sectors thus somewhat capping the massive fall seen in early session. In the broader markets, midcap index slid by 1.85 per cent and small-cap index by 2.66 per cent. 

Overseas, Asian stocks finished lower, while European markets 

opened lower after Donald Trump was elected president of the United States in one of the most bitterly contested us presidential battles. 

In a surprise move, the government on Tuesday banned Rs 500 and Rs 1,000 currency notes in a bid to curb black money. In a result that stunned the markets globally, Donald Trump was today elected the President crushing Democratic rival Hillary Clinton. In domestic market, foreign portfolio investors (FPIs) bought shares worth a net Rs 86.66 crore yesterday, as per provisional data. 

Among the 30-share Sensex pack, 20 stocks ended lower while 10 finished higher. TCS was the top Sensex loser, skidding 4.93 per cent, followed by Maruti 4.68 per cent, Hero Motoco 3.97 per cent, M&M 3.43 per cent, Adani Ports 2.97 per cent, Bajaj Auto 2.93 per cent, HDFC 2.86 per cent, ITC 2.78 per cent, Infy 2.74 per cent, Tata Steel 2.15 per cent and HUL 1.80 per cent. However, Dr Reddy rose by 5.04 per cent. It was followed by Sun Pharma 4.07 per cent after the company’s US subsidiary Taro Pharmaceutical Industries (Taro Pharma) reported better-than-expected Q2 September 2016 results on Tuesday. 

Other big gainers that supported the key indices included SBI 2.83 per cent, Power Grid 1.95 per cent, Gail 1.44 per cent and Lupin 1.31 per cent. 

The market breadth remained negative as 2,157 stocks ended in red, 610 closed in green while 97 ruled steady. The total turnover on BSE amounted to Rs 5,463.21 crore, higher than turnover of Rs 3,142.77 crore registered during the previous trading session. 

The primary real estate market will not be disturbed much with the government’s decision to withdraw 500 and 1,000 rupee notes as legal tender, said a top official of the Confederation of Real Estate Developers Associations of India (CREDAI). 

Getamber Ananda, President of CREDAI-National, said, “Effectively the primary market will not be very disturbed as the inventory was sold to end users who avail home loans.” Anand said: “Moreover the organised part of the real estate industry has always been compliant and it is only the unorganised fly-by-night players who will be affected.”