Sensex recovers amid Trump win & black money curb, down 339 pts Equity benchmarks recovered sharply from day’s lows.
Equity benchmarks recovered sharply from day’s lows on Wednesday amid the victory of Donald Trump in US presidential elections and the government’s move to curb the black money. Recovery in global peers, short covering in healthcare & select banks and rupee appreciation helped the market cut losses. The 30-share BSE BSE Sensex lost nearly 1700 points intraday, before closing down 338.61 points or 1.23 percent at 27252.53. The 50-share NSE Nifty went closer to 8000 level but short covering drove it above 8400. The index settled the trade at 8432, down 111.55 points or 1.31 percent from the previous close. Analysts say they expect the market to be rangebound in near term and the range can be 8400-8800 as new US president’s move will be closely watched while the move to curb the black money may help the RBI ease monetary policy going ahead. “Donald Trump winning the US Presidential elections could be a mixed bag for India. On the one hand, India could get impacted by the ripples caused by the (much feared) policies sought to be implemented by Trump. On the other hand, India could grow as an important ally for US going by his views on China and Middle East,” Dhiraj Relli of HDFC Securities says. Kalmesh Rao of Kotak Securities says trading volumes in market may see a dip in the near future especially from the retail investors. However, the HNI and institutional volumes may not be impacted significantly. The volumes will pick up over medium term to long term, he feels.