Stock futures fall 1.7% after Modi govt scraps Rs 1000 and Rs 500 notes

The SGX India Nifty futures contract fell 1.7 percent in early trade in Singapore on Wednesday, indicating losses for Indian stock markets after a surprise move by Prime Minister Narendra Modi to abolish larger denomination banknotes.

Nearly 40 percent of India's economy is driven by small- and medium-sized enterprises that largely run on cash transactions. Economists said the move could impact these businesses, and in turn have a knock-on effect on economic growth.

"This will have a massive impact on the economy and crimp spending across-the-board," said one Mumbai-based broker.

On Tuesday, Indian shares ended higher for a second consecutive session as investors were cautiously optimistic that Democrat Hillary Clinton would win the U.S. elections.