Indian markets recovered significantly on Wednesday, after the Bombay Stock Exchange and National Stock Exchange both plunged in morning trade. The BSE Sensex closed at 27,252.53, down by 338.61 points, while the NSE Nifty ended 111.55 points lower at 8,432, after Republican nominee Donald Trump was declared the president elect of the United States.
Sensex had crashed by more than 1,600 points (6%) in morning trade, while Nifty had dropped by 505 points. This was the worst crash the indices had seen in seven years and fourth major crash in recorded history, PTI reported.
The morning's crash followed a weak opening for the Sensex and Nifty50, with cues from the Centre's decision to demonetise Rs 500 and Rs 1,000 notes, as well as initial results showingTrump in the lead, Mint reported. The slowdown of the Chinese economy contributed to the slump in trading, too. The rupee closed at 66.45 against the US dollar, as compared to its opening value of 66.70 on Wednesday.
Major losers in Indian markets included ICICI Bank, Tata Motors, Axis Bank, Reliance Industries and ITC. The realty index on the BSE witnessed a decline of 11%, making Oberoi Realty, NBCC, Unitech, Indiabulls, DLF, HDIL, Sobha, Prestige Estates and Godrej Properties the major losers of the day, International Business Times reported.
The results were not as favourable in the US, where investors believe that a Trump regime will translate into international economic and trade trouble, triggered by unpredictable policy making, Reuters reported. Stock futures declined by 2% for Wall Street, while the Dow Jones industrial average, S&P 500 and Nasdaq all dropped by 2% to 3%, CNN reported.
Moreover, the Mexican peso dropped by more than 13%, its lowest since the 1994 Tequila crisis, Reuters reported. Most European markets witnessed a decline, whereas in Asia, stocks plunged, as well – Japan's Nikkei plummeted 5.4% and Hong Kong's Hang Seng declined by 2.2%, CNN reported.