Key benchmark indices sharply pared losses and hit intraday high in mid-afternoon trade after Republican Donald Trump was declared as the 45th President of the United States. At 14:16 IST, the barometer index, the S&P BSE Sensex, was down 303.40 points or 1.10% at 27,287.74. The Nifty 50 index was down 96.95 points or 1.13% at 8,446.60. The Nifty was trading well above the psychologically important 8,000 mark after hitting an intraday low just a shade above that mark in morning trade. The Sensex was trading above the psychologically important 27,000 mark. It had earlier slipped below the 26,000 level at the onset of trading session.
The Sensex recovered after hitting its lowest intraday level in more than five months in early trade. The Nifty recovered after hitting its lowest intraday level in 4-1/2 months in early trade. The Sensex fell 1,688.69 points, or 6.12% at the day's low of 25,902.45 in early trade, its lowest level since 25 May 2016. The index fell 354.17 points, or 1.28% at the day's high of 27,236.97 in afternoon trade. The Nifty fell 541.30 points, or 6.34% at the day's low of 8,002.25 in early trade, its lowest level since 24 June 2016. The index fell 113.45 points, or 1.33% at the day's high of 8,430.10 in afternoon trade.
The initial sell-off on domestic bourses was triggered by the Union government's surprise move to withdraw currency notes with a denomination of Rs 1,000 and Rs 500, effective from Tuesday, 8 November 2016, midnight, in an attempt to crack down on black money.
The broad market depicted weakness. There were more than five losers against every gainer on BSE. 2,236 shares fell and 421 shares rose. A total of 91 shares were unchanged. The BSE Mid-Cap index was currently down 1.89%. The BSE Small-Cap index was currently down 2.65%. The decline in both these indices was higher than the Sensex's decline in percentage terms.
Pharmaceutical shares bounced back from early lows. Dr Reddy's Laboratories (up 4.41%), Alkem Laboratories (up 2.18%), Cadila Healthcare (up 2.01%), IPCA Laboratories (up 1.29%), Aurobindo Pharma (up 1.17%) and Glenmark Pharmaceuticals (up 0.34%), edged higher. Divi's Laboratories (down 0.06%), Strides Shasun (down 0.46%), Wockhardt (down 0.82%), Cipla (down 1.09%), GlaxoSmithKline Pharmaceuticals (down 2.01%) and Piramal Enterprises (down 3.99%), edged lower.
Sun Pharmaceutical Industries was up 3.59% to Rs 658.05 after the company's US subsidiary Taro Pharmaceutical Industries (Taro Pharma) reported better-than-expected Q2 September 2016 results yesterday, 8 November 2016. Taro Pharma's net profit fell 7.2% to $123.7 million on 7.9% growth in net sales to $228.8 million in Q2 September 2016 over Q2 September 2015. The top line during the quarter was driven by increased volumes in the US generic business. However, the increase in operating profit was offset by the decrease in foreign exchange income and an increase in tax expense thereby pulling down the bottom line in Q2 September 2016.
Sun Pharmaceutical Industries will declare its Q2 September 2016 results tomorrow, 10 November 2016.
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Lupin was up 3.23% to Rs 1,558 ahead of the company's Q2 September 2016 results today, 9 November 2016.
Capital goods shares edged lower. Punj Lloyd (down 6.87%), Praj Industries (down 5.02%), Crompton Greaves (down 4.88%), ABB India (down 4.73%), BEML (down 3.94%), Suzlon Energy (down 3.83%), Havells India (down 3.59%), GE Power India (down 3.56%), GE T&D India (down 3.5%), Bharat Heavy Electricals (down 3.39%), Siemens (down 3.36%), Reliance Defence and Engineering (down 3.24%), AIA Engineering (down 2.33%), Jindal Saw (down 1.83%), Bharat Electronics (down 1.67%), SKF India (down 1.56%), Lakshmi Machine Works (down 1.15%) and Thermax (down 0.44%), edged lower.
Engineering and construction major Larsen & Toubro (L&T) was down 1.01% to Rs 1,382.10.
Meanwhile, global financial markets also recovered after intraday sell-off after Republican Donald Trump pulled off a dramatic win to defeat Democratic contender Hillary Clinton in one of the most bitterly contested US Presidential battles. Donald Trump won 276 votes and Hillary Clinton won 218 votes. Candidates need at least 270 electoral votes to win. Trump will be the 45th President of the United States. The United States presidential elections of 2016 were held yesterday, 8 November 2016.
In overseas stock markets, European markets opened lower after Donald Trump was elected president of the United States. Asian stocks were trading lower. In US, stocks finished in positive territory for a second straight day on Tuesday, 8 November 2016, as gains in the consumer goods, utilities and telecoms sectors led shares higher.
Trading in US index futures indicated that the Dow Jones Industrial Average could slump 355.50 points at the opening bell today, 9 November 2016.
On the domestic front, in a historical move that will add record strength in the fight against corruption, black money, money laundering, terrorism and financing of terrorists as well as counterfeit notes, the Government of India decided that the five hundred and one thousand rupee notes will no longer be legal tender from midnight of 8 November 2016. The Government accepted the recommendations of the Reserve Bank of India (RBI) to issue two thousand rupee notes and new notes of five hundred rupees will also be placed in circulation. Notes of one hundred, fifty, twenty, ten, five, two and one rupee will remain legal tender and will remain unaffected by the decision. The Prime Minister said the steps taken by the Government would strengthen the hands of the common citizens in the fight against corruption, black money and counterfeit notes. Persons holding old notes of five hundred or one thousand rupees can deposit these notes in bank or post offices from 10 November 2016 onwards till 30 December 2016, the Prime Minister announced yesterday, 8 November 2016, evening.
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