Market crashes on Trump win, black money curb, ends 339 pts down 

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

Mumbai: Shocked by Donald Trump win in US election and the Centre's black money crackdown, BSE Sensex today crashed 1,689 points -- its worst fall in nearly 15 months -- but recovered just in time to end 339 points lower, while Nifty dived over 541 points to hit the day's lowest.

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 today 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, teck 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, mid-cap 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.

PTI


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