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Sensex drops 1,000 points; real estate shares crumble

Markets showed a recovery after latest election results indicate that Hillary Clinton has narrowed the gap with Donald Trump in the race for the presidency.

In a bid to to crack down on rampant corruption and counterfeit currency Prime Minister Narendra Modi on Tuesday announced that 500 and 1,000 rupee banknotes would be withdrawn from circulation at midnight.

By 10:30 am, the S&P BSE Sensex was down 1,010 points at 26,581 and the Nifty50 was trading 335 points lower at 8,209. In the broader market, the BSE Midcap and Smallcap indices are down 5% each.

The SGX India Nifty futures contract dropped 1.7% in early trade in Singapore on Wednesday, indicating losses for Indian stock markets after the surprise move by Prime Minister Narendra Modi to ban larger denomination banknotes.

The US dollar sank and stock markets plunged in wild Asian trade on Wednesday as every new exit poll in the U.S. presidential election showed the race to be a nail-biter, sending investors flocking to safe-haven assets.

Asian stocks first rose only to retreat more than 1 percent as the session wore on and more election results flooded in, while US stock futures surrendered modest gains and recoiled more than 3%.