Trump, currency ban wipe out 6 lakh crore in minutes

When the market opened on Wednesday, November 9, 2016, all the investors were in for a shocker as there hard earned wealth invested in markets eroded by more than 5 lakh crore to 1.06 lakh crore from the previous day’s close of 1.11 lakh crore.

Markets all over the globe were hoping for a Hillary Clinton victory in this hardly fought election over the past year. But as the votes were counted Donald Trump was leading the Presidential election results.

Anticipating a Trump win markets world over corrected and witnessed a knee jerk reaction as they plunged. Asian markets were down by more than 3 per cent.

Indian markets also plunged, fearing the near-term negative impact that the decision on banning the Rs 500 & Rs 1000 notes would bring on the informal economy and the main stream economic activities too.

India VIX, a gauge for volatility for next 30 days, soared close to 19 per cent points to 19.93. Signifying a huge amount of volatility in the equity markets.