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The announcement by the Indian government about an immediate ban on high-denomination currencies on Tuesday night sent stock markets into a tizzy on Wednesday. The biggest losers were real estate stocks since the sector is notorious for huge cash transactions. A broker reacts while trading at his computer terminal at a stock brokerage firm in Mumbai, India, February 26, 2016 (representational image).Reuters file

4:00 pm IST: The BSE Sensex pared losses by the end of the day to close 338 points lower at 27,252 and the NSE Nifty ended at 8,410, down 133 points. Top Sensex losers were TCS, Maruti Suzuki, Hero Motocorp and Mahindra.

2.00 pm IST: The BSE Sensex and NSE Nifty seem to be cheering Republican candidate Donald Trump's victory over rival Hillary Clinton in the US presidential elections, the results of which were officially declared few minutes ago. The BSE Sensex has recovered morning losses of over 1,500 points and now trading 408 points lower at 27,182 while the NSE Nifty was down 135 points at 8,408.

Bucking the trend, select Sensex stocks were trading in the green; these include Dr Reddy's Labs, Sun Pharma, Lupin and State Bank of India.   

12.40 pm Indian Standard Time (IST): Republican candidate Donald Trump has won US presidential elections, defeating Hillary Clinton, reports ABC News.

11.48 am IST: In case you are bored of Sensex samachar, here is the latest update on US presidential elections, from www.fivethirtyeight.com. Republican candidate Donald Trump is expected to win 283.2 votes as against 254.8 by Hillary Clinton. 

The New York Times says Trump stands >95 percent chance of winning while The Telegraph (UK) says that his victory in the key swing states of Florida, North Carolina and Ohio has almost sealed his entry to the White House, calling it "America's Brexit".

10:40 am IST: In a catchy twist to the ban on Rs 500 and Rs 1,000 currency notes by the Narendra Modi government, Kotak Securities says the BJP-led NDA dispensation is conveying a message: Smash the cash, the economy will dash.

"We see the government's decision to remove extant high-denomination notes from circulation and replace them with new ones as a positive for the economy in the medium term. The latest step appears to be the final one in the government's systematic approach to remove black money from the economy. We expect the economy and the banking system to benefit as a large part of the black economy eventually becomes part of the formal economy," says the brokerage in its Wedneday morning note.

"We see the Indian economy benefiting from (1) higher GDP growth on a reported basis (black economy will gradually become part of the formal economy), (2) higher tax-to-GDP ratio from proper reporting of income in the future; sections of the unorganized industry and professionals did not report their full income; the implementation of GST will hasten the move, in our view and (3) higher savings rate, especially financial savings rate. We have been quite positive about a step change in India's financial savings rate over the next few years driven by the government's actions on (1) monetary policy; positive real interest rates, (2) financial inclusion and (3) crackdown on black money," it adds.

10:30 am IST: The BSE Sensex is down 934 points at 26,656. Top Sensex losers are Adani Ports, Mahindra, Hero Motocorp, ICICI Bank and Bajaj Auto. 

Asian stock markets were trading in the red, taking cues from trends in the US presidential elections where Donald Trump and Hillary Clinton are poised for a close finish.

 "Asian markets are in red with Japan's Nikkei down 1.25% while China's Shanghai is down 0.35% after inflation picked for the second straight month. U.S. equities closed higher yesterday, led by utilities, as investors eagerly awaited the results of the U.S. presidential election today.

"Oil fell ahead of US crude oil inventories data today while dollar index down 1.03%. U.S. Initial jobless claims data will be released tomorrow. Data released yesterday showed that JOLTS job openings data recorded a slight increase in job openings to 5.49mn for September from a revised 5.45mn in August," Geojit BNP Paribas said in its Wednesday morning note.

9:42 am IST: Indian rupee opens 19 paise lower at 66.80 to the US dollar.

9:26 am IST: Realty index on the BSE has slumped by 11 percent, on expected lines. Top losers include Oberoi Realty, NBCC, Unitech, Indiabulls, DLF, HDIL, Sobha, Prestige Estates and Godrej Properties.

The BSE Sensex is trading 980 points down, or 3.55 percent, at 26,610 while the NSE Nifty is down 347 points at 8,196.

Top Sensex and Nifty losers are Adani Ports, Mahindra, Asian Paints, Hero Motocorp, Bajaj Auto, ICICI Bank and Sun Pharma (Sensex), and Asian Paints, Grasim, UltraTech Cement, ACC and Mahindra (Nifty).

9:18 am IST: The BSE Sensex has crashed by over 1,600 points, or 6 percent while the NSE Nifty opened with a loss of 505 points at 8,038.  

Top Sensex losers are ICICI Bank, Adani Ports, Tata Motors, Axis Bank, Reliance Industries, ITC.

The BSE Sensex and NSE Nifty are expected to open lower on Wednesday amid volatility across stock, currency and bond markets in response to the drastic announcement on Tuesday by Prime Minister Narendra Modi scrapping Rs 500 and Rs 1,000 currency notes.

Read: Reserve Bank of India to issue Rs 2,000 notes soon: Report {Image of note}

Here are photos of the new Rs 500 and Rs 2,000 notes you will soon get

The worst hit are likely to be real estate stocks as transactions in this sector are marked by huge element of cash changing hands between sellers and buyers.

A hint to that effect was also given by Deepak Parekh, chairman of mortgage lender HDFC while speaking to CNBC-TV18 on Tuesday.

Real estate consultants are positive on the impact in the long-term. 

"This is a transformational reform by the Modi government. Real estate transactions in progress and not completed that involve CASH will be impacted, leading to complications. This will certainly lead to pain in the realty sector in the short term, but it Is a welcome move for the long run," Ravi Ahuja, executive director, Office Services & Investment Sales at Colliers International, said. 

JLL India Chairman & Country Head Anuj Puri also had similar comments on the development.

"The banning of higher currency notes is a major move which will help curb unaccounted-for cash in the real estate sector. We have just witnessed a tremendous step towards increased transparency in the Indian real estate industry.

"The effects will be far-reaching and immediate, and shake up the sector in no uncertain way. Stricter measures against black money have for long been required to help bring about greater transparency, give the Indian real estate sector more credibility and make it more attractive for foreign investors.

"Black money deals are more common on the unorganized market, but this practice has, in fact, been on the decrease with greater awareness on the part of buyers. Before too long, the caricatured version of black money driving Indian real estate is no longer applicable," he said in a note.

US presidential election results dimension

The results of the US presidential elections are also bound to have a bearing on Indian stock markets, though it is still not clear whether Republican nominee Donald Trump or his rival Hillary Clinton will win in the polls that has marked by many twists and turns.

PMO

Asian markets are in red with Japan's Nikkei down 1.25% while China's
Shanghai is down 0.35% after inflation picked for the second straight
month. U.S. equities closed higher yesterday, led by utilities, as investors
eagerly awaited the results of the U.S. presidential election today.
Oil fell ahead of US crude oil inventories data today while dollar index
down 1.03%. U.S. Initial jobless claims data will be released tomorrow.
Data released yesterday showed that JOLTS job openings data recorded a
slight increase in job openings to 5.49mn for September from a revised
5.45mn in August.

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