Sensex opens lower after PM deems higher denomination notes illegal

Mumbai: Indian slumped cracked down sharply on Wednesday after the Government withdrew currency note with a denomination of Rs 1000 and Rs 500 Effective from Tuesday midnight. The focus of the market shifted from results of the US Elections to late evening announcement by PM Modi.

Pm's announcement of scrapping the higher denomination role came with the opinion of several stock market analysis stating that while the short term impact is likely to be negative, the move is the better one.

ALSO READ: Indians help Donald Trump win US Presidential Elections

• The National stock exchange spokesperson was asked about the usual trading of the exchange on Wednesday and He gave a positive reply.“As of now, yes,” he said stating that the exchange was set to be open for the day.
• According to market analyst Ambareesh Baliga,“Indian markets will open down on Wednesday. With the noose tightening on black money, the consumption story goes for a complete toss".
• “Structurally, it is a positive move. I hope the market looks beyond the immediate jitters on consumption which are likely to bother in the very near term,” said Navneet Munot, chief investment officer at SBI Mutual Fund.

• The analysts have requested the long term investors to take the move in a positive manner." The long term investors should take it positively, and probably buy at the dips," a statement from a Stock Market analyst came.

It may be mentioned that after PM's announcement, Bombay Stock Exchange's 30-share sensex closed at 27,591.14 points on Tuesday last which was 0.48 per cent higher and NSE's 50 share nifty climbed 46.50 points to close at 8,543.55 points.

ALSO READ: First look of new Rs 500 and Rs 2000 note issued by RBI