Summary The Sensex index on the Bombay Stock Exchange plummeted 6.08 percent.
MUMBAI (AFP) - Indian stocks plunged six percent Wednesday after a shock announcement that high denomination notes were being pulled from circulation and as Donald Trump appeared to be moving into the lead in the US election.
The Sensex index on the Bombay Stock Exchange plummeted 6.08 percent, or 1676.39 points, shortly after the opening bell.
The fall came after Indian Prime Minister Narendra Modi announced late Tuesday that 500 and 1,000 rupee notes would cease to be legal tender in a move designed to crack down on tax evasion.
The decision saw long queues form outside ATMs across the country as people rushed to withdraw 100 rupee notes before a one-day shutdown Wednesday of all banks and ATMs.
When they reopen again on Thursday, new 500 and 2,000 rupee denomination notes will be issued by the Reserve Bank of India (RBI), the country’s central bank.
The 500 and 1,000 notes, which are worth around $7.50 and $15 respectively, are the largest bills in use in India, which is still a massively cash intensive economy.
The fall on the Sensex also came as Trump appeared to be closing in on victory in the US election as television networks called the key states of North Carolina, Florida and Ohio in his favour.
