Sensex crashes 1600pts, Nifty below 8100 on US polls, black money
New Delhi [India], Nov 8 : Wednesday morning witnessed a situation of blood bath on Dalal Street as nervous investors welcomed triggers with US elections outcome around the corner as Donald Trump leads in the US elections.
Also, the market apprehensions are on the rise as it welcomed government's decision to withdraw Rs. 500 and Rs. 1000 notes in an attempt to curb black money.
The Sensex witnessed a crash of 1584.19 points or 5.7 percent at 26006.95, while the Nifty witnessed a downfall of 474.00 points or 5.6 percent at 8069.55.
The dollar tumbled against the yen and euro while the Mexican peso fell off a cliff as polling results in the knife-edge US presidential race pointed to a strong showing by property mogul Donald Trump.
The greenback plunged 3.8 percent to 101.50 yen while it lost almost two percent against the euro, which bought USD 1.1224 in Tokyo trading.
Also, the real estate stocks have taken a pounding in early trade as the sector is expected to feel the heat of the government's move to phase out the old Rs. 500 and Rs. 1000 notes. The general view is that a lot of purchases may get deferred in the short term.
The move on currency notes will hurt businesses and sentiment in the short term, but this a is a good move which will improve India's standing in the long run, says Envision Capital's Nilesh Shah.
In an interview to CNBC-TV18, Marc Faber of The Gloom, Boom and Doom Report said, "The Indian government's move to clampdown on black money is negative in the longer run. I don't think big corruption comes from bank notes." (ANI)