Sentiment suffered a jolt following the government's surprise move to ban Rs 500 and Rs 1,000 currency notes in a bid to curb black money. That triggered all-round selling, dragging down key indices. Photograph: (Reuters)
Both the Sensex and the Nifty nosedived by almost 6 per cent
The Indian indices, the BSE Sensex and the Nifty, fell fast after the opening bell Wednesday. The Sensex went into free fall and plunged by more than 1,500 points. Both the Sensex and the Nifty nosedived by almost 6 per cent.
The falls were expected, considering Prime Minister Narendra Modi's announcement last night that 500- and 1000-rupee notes would cease to be legal tender starting midnight. And world markets went into a panic as the possibility of a Donald Trump win in the US election began to look more and more real.
Most sectoral indices,m led by realty, consumer durables and auto, tumbled.
Real estate was the hardest hit. This is where people park their black money and the sector tanked after the Prime Minister's announcement.
Real estate prices were down by 15 per cent.
The major losers were DLF, Sobha Developers, India Bull Real Estate, Godrej Properties, HDIL and Unitech, down by up to 15 per cent.
The Rupee weakening against the US dollar by 23 paise to 66.85 added to the market sentiment.
Brent oil prices also dived 2.65 per cent to 44.82 per barrel in Asian trade. US S&P futures plunged 4.45 per cent.