The equity markets slumped sharply on Wednesday tracking losses in global stocks as uncertainty over the outcome of the US presidential election next week and fear about an interest rate hike by the US Federal Reserve rattled investor sentiments.
Market pundits pointed out that jittery investors booked profits in frontline index stocks after an opinion poll in the US said the Republican presidential nominee Donald Trump is having a minor lead over Hillary Clinton in the US Presidential race while another poll showed that Mrs Clinton’s lead has narrowed to 2.2 percentage points, from more than 7 points two weeks ago.
The Sensex slumped 349.39 points or 1.25 per cent to end the day at 27,527.22 while the Nifty closed the day at 8514, down 112.25 points or 1.30 per cent.
“The markets were little complacent as opinion polls released earlier suggested a clear lead for Mrs Clinton in the US presidential election. However, the latest opinion polls has shocked global market participants,” said Ajay Bodke, CEO and chief portfolio manager (PMS) at Prabhudas Lilladher.
According to him, Mr Trump’s provocative stand on key issues like global trade, immigration, outsourcing, internal security, globalisation and trade barriers have caused a considerable amount of anxiety among the global business community.
