3 reasons that sent Sensex down 1,000 points on Wednesday
updated on 9 Nov 2016
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Wednesday looks nothing short a repeat of what happened on June 23, the day the Brexit vote results were out. Two unexpected big news - a strong lead for Republican Donald Trump in the US presidential election and Prime Minister Narendra Modi’s massive crackdown on black money with the withdrawal of Rs 500 and Rs 1,000 notes - spooked investor sentiment on Wednesday.

The BSE Sensex was heading for biggest daily percentage loss since August 2015, wiping out Rs 7 lakh crore of equity investor wealth as it fell some 1,000 points.

The following are the top five factors dragging the market down in Wednesday’s trade.

1) Trump ahead of Clinton: Latest update on US vote count showed Republican presidential candidate Donald Trump was leading in 167 seats against Democrat Hillary Clinton’s 133. Various brokerages had warned of a sharp fall in US and global equities to the tune of 3-10 per cent should Trump win the election.

2) Modi crackdown on black money:
Everyone from the common man to Dalal Street experts lauded the government’s ban on Rs 500 and Rs 1,000 notes. However, the move is expected to hit many sectors such as real estate and jewellery, where cash transactions and, thus, use of black money is widespread. Sectors like real estate and jewellery that use more of black money will take a big knock.

3) Global turmoil, hunt for safe haven: With a win for Donald Trump in sight, a global meltdown was seen across global stock markets, while firm buying was seen in safe haven assets such as gold and the Japanese yen. Gold prices touched a five-week high in trade on Wednesday. The yellow metal soared 3 per cent in trade.

Spot gold hit $1,312, its strongest level since October 4 in global markets, Reuters reported. Safe haven currency yen surged. The Japanese currency w ..

While writing this report - Sensex have recovered 700  points and was down only around 300 points.