Sensex tumbles almost 1,000 points
While the US elections uncertainty continues, along with huge crackdown from Prime Minister Narendra Modi last night, markets conditions are continuously going downhill which caused domestic investors to lose nearly Rs 6 lakh crore in trade in the first 15 minutes of trade on BSE, data suggested.
In the first 15 minutes, the combined market capitalisation of BSE stocks had fallen by Rs 57,3827.36 crore to Rs 1.05 lakh crore from Rs 1.11 lakh crore at the end of the previous session.
The S&P BSE index, Sensex has tumbled down since the markets opened and at 11:10 AM the S&P BSE Sensex was down 991 points at 26,600and the Nifty50 was trading 319 points lower at 8,224. In the broader market, the BSE Midcap and Smallcap indices are down 5% each.
The Sensex recorded the lowest at 26,251 points at the opening, and the market showed improvement in the first hour of trading.
The global stock market has created jolts in the market, causing severe tensions across the global economy. In a report of Economic Times, Ramesh Damani, Member, BSE, said the fall in the market was on expected lines due to currency move and US elections. He said he would look at the prevailing situation as time for ‘bargain hunting’ rather than ‘panic buying.’
One of the reasons being estimated for such downfall of markets is that in US Presidential Elections, latest exit polls indicate that Republican candidate Donald Trump is ahead of Democratic candidate Hillary Clinton, as the gap narrows between the two.
Amid global attention on these, PM Modi had announced that 500 and 1,000 rupee banknotes would be withdrawn from circulation at midnight to crack down on rampant corruption and counterfeit currency, which added to the market tensions.
Other reasons being estimated are hunt for safe havens, as the global turmoil has erupted with Donald Trump win in sight. Other than that, Valuation concerns for the markets after a broader rally from February loss. Adding to that is the slow revival of earnings, as September quarter results have not shown enough strength for sharp rebound.