1. Modi government crackdown on blackmoney: Real estate, jewellery stocks may take a hit

Modi government crackdown on blackmoney: Real estate, jewellery stocks may take a hit

Stock markets will remain open, and clearing and settlement systems will operate normally

By: | Mumbai | Published: November 8, 2016 11:52 PM
Rs 500 and Rs 1000 notes which will be discontinued from Tuesday midnight as a step to curb black money. Prime Minister Narendra Modi said during his address to the nation in New Delhi. (PTI) Rs 500 and Rs 1000 notes which will be discontinued from Tuesday midnight as a step to curb black money. Prime Minister Narendra Modi said during his address to the nation in New Delhi. (PTI)

Stock markets will remain open tomorrow and all risk management systems and surveillance measures have been beefed up to tackle any extreme volatility in the wake of demonetisation of certain currency notes and the US presidential election results.

Banks will remain closed tomorrow for the public to allow them time to cope with the government’s decision to discontinue existing Rs 500 and Rs 1,000 currency notes with effect from midnight tonight.

However, the stock markets will remain open, and clearing and settlement systems will operate normally, exchange official said.

Sources said that the capital markets regulator Sebi and the stock exchanges have taken necessary steps to safeguard any extreme volatility due to the sudden measures announced by the government to check black money menace and counterfeiting of currency notes.

Besides, the risk management systems and surveillance measures have also been beefed up to tackle any extreme volatility that may arise due to the results of the US presidential elections expected tomorrow morning.

Marketmen said that the stocks from the real estate and jewellery sectors, which are known to involve huge cash transactions, may be affected in a big way, while the US results would have wider impact on currency, bullion and currency markets, among others.

The regulatory authorities and the exchanges would ensure that systems are in place to keep a check on any manipulative activity taking advantage of huge volatility expected in the markets.

Please Wait while comments are loading...

Go to Top