Modi, Donald trump the market: Sensex crashes 1,600 points, investors lose Rs 7 lakh crore

A possible Trump presidency and PM Narendra Modi's surgical strikes on black money have hit the markets hard. 

A day after Prime Minister Narendra Modi announced existing Rs 500 and Rs 1000 notes invalid in an attempt to curb black money dealings, the Sensex crashed 1,600 points while Nifty plunged 476 points today.

Investors in India lost Rs 7 lakh crore, as per market estimates. The black money crackdown and Republican Party's Donald Trump's strong showing in the US presidential election have hit the market hard.

The sharp nosedive of the stock market was expected over the government's surprise move to stop circulation of existing Rs 500 and Rs 1,000 notes from Tuesday midnight.

MEANWHILE, DOLLAR PLUNGES
The US dollar sank and stock markets slammed into reverse in wild trade on Wednesday as investors faced the real possibility of a shock win by Republican Donald Trump that could upend the global political order.

Every new exit poll in the US presidential election showed the race to be a nail-biter, sending investors stampeding to safe-haven assets.

MARKETS ON EDGE
Markets fear a Trump victory could cause international economic and trade turmoil, discouraging the Federal Reserve from raising interest rates in December as long expected. Fed fund futures were even starting to toy with the idea of a cut in rates next year.

The scale of the scare was clear in the Mexican peso, where the dollar surged over 10 percent in the biggest daily move in two decades. The peso has become a touchstone for sentiment on the election as Trump's trade policies are seen as damaging to its export-heavy economy.

Source:Indiatoday