Selling in equity market continued unabated in mid-morning trade. At 11:16 IST, the barometer index, the S&P BSE Sensex, was down 979.28 points or 3.55% at 26,611.86. The Nifty 50 index was down 313.30 points or 3.67% at 8,230.25. The Nifty held above the psychologically important 8,000 mark. The Sensex was trading below the psychologically important 27,000 mark. It had slipped below the 26,000 level at the onset of trading session. 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 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.
The broad market depicted weakness. There were more than 13 losers against every gainer on BSE. 2244 shares fell and 168 shares rose. A total of 63 shares were unchanged. The BSE Mid-Cap index was currently down 5.29%. The BSE Small-Cap index was currently down 6.28%. The decline in both these indices was higher than the Sensex's decline in percentage terms.
Real estate shares slumped after Prime Minister Narendra Modi announced the eradication of Rs 500 and Rs 1000 banknotes from the system effective 8 November 2016 midnight in a swift move to clamp down on black money in the system and against terror financing. The real estate sector, which is infamous for being the biggest receiver and hoarder of black money in the domestic economy, is likely to take a massive hit.
Indiabulls Real Estate (down 26.83%), DLF (down 22.9%), Housing Development and Infrastructure (HDIL) (down 22.77%), Sunteck Realty (down 18.55%), Anant Raj (down 17.56%), Peninsula Land (down 15.26%), Unitech (down 14.06%), Oberoi Realty (down 13.78%), D B Realty (down 12.72%), Prestige Estates Projects (down 12.57%), Parsvnath Developers (down 11.05%), Sobha (down 9.01%), Phoenix Mills (down 8.95%), Mahindra Lifespace Developers (down 5.14%), Godrej Properties (down 5.03%) and Omaxe (down 2.35%), edged lower.
IT shares tumbled. Hexaware Technologies (down 7.36%), Tech Mahindra (down 6.07%), MindTree (down 4.72%), TCS (down 3.97%), Wipro (down 3.49%), Persistent Systems (down 3.29%), HCL Technologies (down 3.14%), MphasiS (down 2.97%), Infosys (down 2.79%) and Oracle Financial Services Software (down 2.69%), edged lower.
Tata Communications slumped 5.29% after consolidated net profit tanked 64.4% to Rs 39.96 crore on 1.08% decline in total income to Rs 4581.92 crore in Q2 September 2016 over Q2 September 2015. Tata Communications reported Rs 125 crore as an impairment on investment in Neotel in Q2 September 2016. The result was announced after market hours yesterday, 8 November 2016.
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 682 points at the opening bell today, 9 November 2016, as Republican presidential nominee Donald Trump pulled ahead of Democrat Hillary Clinton in electoral votes.
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. Investors fear a Trump victory could cause global economic and trade turmoil and years of policy unpredictability, discouraging the Federal Reserve from raising interest rates in December as long expected.
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