Key benchmark indices crashed in early trade. At 9:21 IST, the barometer index, the S&P BSE Sensex, was down 1,047.84 points or 3.80% at 26,543.30. The Nifty 50 index was down 374.40 points or 4.38% at 8,169.15. Global financial markets sold off as the initial results of the US election were being called, with Asian stocks and US futures tumbling as Donald Trump pulled ahead in the race for presidency. The United States presidential elections of 2016 were held yesterday, 8 November 2016.
Meanwhile, 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.
The market breadth indicating the overall health of the market was quite weak. On BSE, 1,662 shares fell and 43 shares rose. A total of 32 shares were unchanged. The BSE Mid-Cap index was currently down 6.79%. The BSE Small-Cap index was currently down 8.47%. The decline in both these indices was higher than the Sensex's decline in percentage terms.
In overseas stock markets, Asian stocks slumped in volatile trading as investors await the outcome of the US presidential election, with early results showing Donald Trump capturing several states. 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 644 points at the opening bell today, 9 November 2016, as Republican presidential nominee Donald Trump pulled ahead of Democrat Hillary Clinton in both electoral votes and in the battleground states of Florida, Ohio and North Carolina.
Investors around the world are closely watching how the vote tally plays out in America, where Democrat Hillary Clinton and Republican Donald Trump vie for the White House. Clinton is viewed more favorably by Wall Street, as she is a well-known political entity who represents the status quo. In contrast, Trump is viewed more warily by investors due to his unpredictable behavior and his negative views on free trade.
Back home, Asian Paints (down 7.79%), Adani Ports and Special Economic Zone (down 7.18%), Mahindra & Mahindra (down 6.94%), Sun Pharmaceutical Industries (down 5.75%), Hero MotoCorp (down 5.17%) and HDFC (down 4.51%), were the major losers from the Sensex pack.
L&T was down 3.92%. The company announced after market hours yesterday, 8 November 2016, that it has signed a long-term Technical Licence Agreement with Chiyoda Corporation for its 'Chiyoda Thoroughbred 121TM (CT-121TM)' Flue Gas Desulphurisation (FGD) Technology. The agreement grants L&T exclusive rights to undertake EPC of CT-121TM FGD Systems. The new emission norms for coal-based thermal power plants in India, notified vide MoEFCC Gazette dated 7 December 2015, introduced new limits on sulphur dioxide (SO2) emissions. The move which makes Indian emission norms among the most stringent in the world, has called for mandatory installation of FGD systems in upcoming power plants, including those currently under construction and many that are already operational. L&T and Chiyoda's relationship dates back over two decades with L&T-Chiyoda Limited, a JV that has come to be an internationally reputed design and engineering consultancy organisation catering to the Hydrocarbon sector. Through the signing of this agreement, the two companies have extended their association into the power sector as well.
ICICI Bank was down 4.89%. The bank clarified after market hours yesterday, 8 November 2016, on recent media reports regarding cyber-attacks that there was no breach incident within the control of the bank pertinent to this news item which would have required reporting. The incident reported relates only to a small segment of customers of the bank who used the other bank ATM.
HDFC Bank was down 2.28%. The bank clarified after market hours yesterday, 8 November 2016, on recent media reports regarding cyber-attacks that the bank has taken appropriate steps in this regard. There has been no breach of HDFC Bank systems and the incident is an outcome of possible compromise at a third party payment processor. The impact for the bank is limited owing to various steps taken by the bank.
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