Key benchmark indices continued to trade on a weak note due to poor global cues. At 10:16 IST, the barometer index, the S&P BSE Sensex, was down 848.29 points or 3.07% at 26,742.85. The Nifty 50 index was down 276.75 points or 3.24% at 8,266.80. 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.
The Nifty held above the psychologically important 8,000 mark. The Sensex was trading below the psychologically important 27,000 mark. The Sensex hit its lowest intraday level in more than five months. The Nifty hit its lowest intraday level in 4-1/2 months. 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 564.86 points, or 2.05% at the day's high of 27,026.28 in morning 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 192.40 points, or 2.25% at the day's high of 8,351.15 in morning trade.
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 717 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, the broad market depicted weakness. There were more than 12 losers against every gainer on BSE. 2,032 shares fell and 159 shares rose. A total of 63 shares were unchanged. The BSE Mid-Cap index was currently down 4.87%. The BSE Small-Cap index was currently down 5.50%. The decline in both these indices was higher than the Sensex's decline in percentage terms.
Banks stocks tumbled after the government yesterday, 8 November 2016, announced that it is banning use of Rs 500 and Rs 1,000 notes, in its fight against the corruption, fake currency and black money.
Among private sector banks, RBL Bank (down 5.74%), Federal Bank (down 5.05%), Yes Bank (down 3.68%), Kotak Mahindra Bank (down 2.51%), City Union Bank (down 2.11%), IndusInd Bank (down 1.95%) and Axis Bank (down 1.84%), edged lower.
ICICI Bank was down 4.25%. 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 1.40%. 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.
Among state-run banks, Allahabad Bank (down 5.5%), IDBI Bank (down 5.44%), Union Bank of India (down 5.25%), Syndicate Bank (down 4.92%), Andhra Bank (down 4.81%), Central Bank of India (down 4.39%), Canara Bank (down 4.18%), United Bank of India (down 3.83%), Punjab National Bank (down 3.77%), UCO Bank (down 3.59%), Bank of India (down 3.3%), Bank of Baroda (down 3.15%), Indian Bank (down 2.78%), Bank of Maharashtra (down 2.61%), State Bank of India (down 2.43%), Dena Bank (down 2.01%), Punjab & Sind Bank (down 1.96%), Vijaya Bank(down 1.92%) and Corporation Bank (down 0.63 %), edged lower.
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.
Metal shares tumbled as copper price edged lower in the global commodities markets. Steel Authority of India (down 8.38%), Jindal Steel & Power (down 6.65%), Hindustan Copper (down 6.53%), Bhushan Steel (down 5.99%), National Aluminium Company (down 5.59%), Vedanta (down 4.95%), NMDC (down 4.92%), Hindalco Industries (down 4.68%), Hindustan Zinc (down 3.84%), JSW Steel (down 3.45%) and Tata Steel (down 2.99%), edged lower.
High Grade Copper for December 2016 delivery was currently down 2.08% at $2.3305 per pound on the COMEX.
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