Demonitisation: 8 lakh crore wiped out in stock market crash
Almost Rs 8 lakh crore has been wiped out of the stock markets following last evening’s surprise demonetisation of Rs 500 and Rs 1,000 notes. The BSE Sensex opened almost 1,500 points down this morning and was recovering slowly from the shock because of an impending Donald Trump victory. It is said that stock traders from Gujarat suffered almost Rs 5 lakh crore losses, which is about 60 per cent of the impact.
Gold saw heavy purchase with many jewelers staying open well into the night demolishing one of the key reasons of the demonitisation – to curb black money. As a result, gold prices went up indicating that the gold market saw massive inflows last evening. It is said that Chawri Bazar, the destination for jewellery in Delhi, saw over Rs 100 crore business.
If this wasn’t enough, unlike as promised by Prime Minister Narendra Modi, petrol pumps which were to accept the old high value notes have been turning people away. Many petrol pumps also ran empty after the fuel buying orgy of last night with almost all SUVs and cars getting their tanks filled. The run at ATMs ended with most running out of Rs 100 notes.