Sensex Falls Nearly 700 Pts & Nifty Drops 2.69% Post Trump Victory

Trump’s stance has led to worry that the Federal Reserve will raise the interest rates more than expected.

Trump’s stance has started worry that the Federal Reserve will raise the interest rates more than expected. (Photo: Reuters)

On Friday, Indian shares fell by 2.54 percent driven by fears that the new US president-elect Donald Trump will have inflationary policies which would dent the appeal of emerging markets.

Sensex finally closed at 26,818.82, down by 698.86 points. Nifty settled at 8,296.30, a fall of 2.69 percent or 229.45 points.

Trump’s stances, such as protectionism and fiscal expansion, has led to a worry that the Federal Reserve will raise the interest rates more than expected, as reported by Livemint.

ICICI and YesBank have seen the biggest losses on the index. The Nifty IT index saw its biggest fall since mid-February as it fell by 2.51 percent.

The US bond yields have risen sharply. Trump’s announcement of massive push to the US economy has led to fears that it will stoke inflation in future. The dollar is strengthening and money is moving out of emerging assets.

Ajay Bodke, CEO, Prabhudas Lilladher Pvt Ltd

The results of the September quarter have not shown enough strength to hold any promise of a sharp rebound in earnings for the forthcoming quarters, the Economic Times reported.

Source: Livemint, Economic Times