Rs 500, Rs 1000 notes expiry: Will domestic stock market bleed in tomorrow's trade?

Prime Minister Narendra Modi on Tuesday made some historic announcements which is likely to make the domestic stock market bearish. 

Modi said that Rs. 500 and Rs. 1000 notes cease to be legal tender with effect from midnight. 

The domestic markets on Wednesday may open in red considering investors' sentiments likely to remain weak as they were caught unaware.

There are chances of real estate stocks will be hit the hardest. Apart from this, the shares of cement and steel stocks to be impacted by the announcement as they largely derive significant demand from the real estate sector.

Commenting on the government's move, Arundhati Bhattacharya, Chairperson, State Bank of India, to Bloomberg, she said, SBI ATMs will be closed tomorrow. She ensured that the ATMs/cash dispensers will restock at the earliest.

Bhattacharya also mentioned that the SBI will work round-the-clock to meet the demand. 

After Modi's announcement, the Reserve Bank of India Governor Urjit Patel said that RBI has increased the production and trying to provide new currency notes as soon as possible.

Today, the Sensex closed at 27,591.14, up 132.15 points, or 0.48%. While, NSE Nifty ended at 8,543.55, up 46.50 points, or 0.55%.