Demonetisation, Trump’s election lead to chaotic swings in the sensex

Benchmark indices slumped by almost 3% tracking weak global cues after US bond yields soared on expectations US President-elect Donald Trump’s policies would stoke inflation. Further, demonetisation move by the government dampened investor sentiment especially with fast moving consumer goods and consumer discretionary sectors to have an impact in the short term. In an effort to curb black money and counterfeiting the government in a surprising move announced the demonetisation of Rs 500 and 1,000 currency notes with effect from midnight Tuesday.

The S&P BSE Sensex ended down 699 points to settle at 26,819 and the Nifty50 settled 229 points lower at 8,296.  The broader markets underperformed the benchmark indices significantly- BSE Midcap and Smallcap indices fell between 3%-4%. Market breadth on the BSE ended lower with 2,218 declines and 411 advances.

BSE Consumer Durables and Realty indices slumped by almost 5% followed by counters like Auto, Banks, Metal and IT, all falling between 2%-4%.

Sun Pharmaceutical Industries rallied 3% after the pharma major’s consolidated net profit more than doubles to Rs 2,235 crore for the quarter ended September 30, 2016 (Q2FY17).

Shares of Tata Consultancy Services (TCS) hit a 52-week low of Rs 2,097, down nearly 2% on the National Stock Exchange (NSE) in intra-day trade on Friday.

SBI plunged over 3% after posting a 34.57% fall in net profit to Rs 2,538 crore for the quarter ended September 2016 on rise in provisions for non-performing loans.

The Nifty bank index dropped by over 3%, after a four-session winning streak on the back of hopes that India’s unexpected push to withdraw larger banknotes from circulation would lead to a surge in lenders’ cash positions.

Shares of InterGlobe Aviation, Jet Airways and SpiceJet fell between 2%-5% each over media reports that said the government would impose a new levy on some domestic flights.

Indiabulls Real Estate moved higher by 6%, bouncing back 14% from intra-day low, after the company announced that the board will meet on November 24, to consider buyback of equity shares.

Bata India, Greenlam Industries, Pidilite Industries and YES Bank were among the other stocks to see a surge in volumes on BSE today.

Jain Irrigation Systems ended higher by 2% after the company reported a consolidated net profit of Rs 28 crore for the quarter ended September 30, 2016 (Q2FY17).

Here are some picks from the week gone by.

Company: Tech Mahindra CMP: 429.40 Mastermind
Company: GMR Infrastructure CMP: 11.80 Mastermind
Company: JSW Steel CMP: 1721.10 Mastermind
Company: Bank of India CMP: 122.05 Mastermind
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Company: Motherson Sumi CMP: 301.50 Mastermind
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Reblog: Here’s What Raghuram Rajan Thinks Of Currency Demonetisation
Reblog: Demonetization: Impact on stock markets

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