Sensex, Nifty bleed as Britain breaks away from EU; banks fall

Moneycontrol Bureau11:53 am JLR reacts to Tata Motors: We respect the views of the British people and in line with all other businesses, Jaguar Land Rover will manage the long-term impact and implications of this decision: nothing will change for us, or the automotive industry, overnight.

Europe is a key strategic market for our business, comprising 20 percent of global sales, and we remain absolutely committed to our customers in the EU.

There will be a significant negotiating period, and we look forward to understanding more about that as details emerge. We look forward to working with the British Government and the automotive sector to ensure that the UK’s automotive industry remains as competitive as ever, and that negotiations between the UK Government and the EU will continue to recognise the importance of car manufacturing to the UK and European economies.11:50 am RBI action: The Reserve Bank of India likely sold dollars around 68.20 rupee levels through state-owned banks to prevent the rupee from falling further, three traders said on Friday, adding that appeared to be the level the central bank was keen on defending.

The Indian rupee was trading at 68.1225/68.1300 to the dollar at 9.24 a.m. after tumbling to as low as 68.22 to the dollar, its weakest since March 1.

The currency had closed at 67.25/67.26 per dollar on Thursday.

11:45 am FM's views: Finance Minister Arun Jaitley today said India is well prepared to deal with short and medium term consequences of Britain exiting the European Union and has solid immediate and medium-term firewalls in form of healthy forex reserves.

Stating that the verdict of the referendum will add to the volatility in the global markets, he said all countries around the world will have to brace themselves for a period of possible turbulence while being watchful about, and alert to, its medium term impacts.

"As regards the Indian economy, we are well prepared to deal with short and medium term consequences of Brexit," he said in a statement.

11:40 am Exclusive Governor Raghuran Rajan Says central bankers have to get together for currency stability. He says that there are some movement in currencies is warranted and is worried about global currency devaluation

11:35 am UK knocks off Indian money: Playing havoc, UK's vote to exit European Union knocked off nearly Rs 4 lakh crore from the investors' wealth in Indian stock markets within minutes they opened for trading this morning.

The total investor wealth, measured in terms of cumulative value of all listed stocks including that of promoters, fell below Rs 98 lakh crore level early morning as reports from the UK showed Britain voting against remaining with the EU block.

This marked a plunge of nearly Rs 4 lakh crore from Rs 101.4 lakh crore at the end of yesterday's trade.

11:30 am Market view: As India is a domestic-focused economy unlike other countries in Asia, the need of the hour for the economy is to get the GST Bill passed in the Parliament, said Ramesh Damani, Member of BSE and NSE. Speaking to CNBC-TV18, Damani says global markets will recover in time as Britain constitutes only 3 percent of the world’s total economy.11:25 am Market outlook: Panic will pass in a couple of days, says Nirmal Jain of IIFL. Long-term impacts could be bigger.

Jain says that it will take the UK two-to-three years to complete the whole process and hence the impact in near-term for India will be minimal.

India is bound to recover with expectations of good monsoon and recovery in demand. If market falls, then that is a buying opportunity, Jain says.

11:20 am Buzzing: Auto stocks are under immense selling pressure as UK has decided to march out of the European Union. BSE Auto index is down over 5 percent at 11 am with benchmark indices tumbling over 3 percent each. Tata Motors sank 15 percent intraday on Friday. Tata Motors’ British subsidiary Jaguar Land Rover (JLR) had earlier said that it may suffer an estimated 1 billion pounds by 2020 if Britain exits EU. The analysis expects the £1 billion hit to come from a 10 percent levy on vehicles being exported to Europe and 4 percent on imports of components for the production of vehicles. 11:15 am Can India withstand UK exit? India has the firepower to withstand Britain's likely exit from the European Union, will accelerate growth programmes to offset its impact, and does not expect its foreign trade to suffer, a senior finance ministry official said.

"India is prepared for all eventualities," Economic Affairs Secretary Shaktikanta Das said on Friday on the steps of the finance ministry after UK broadcasters called the outcome of Britain's EU referendum in favour of quitting the bloc.11:10 am Govt's stance: Even with important economic zones like the European Union (EU) and the US going through turbulent times, getting Goods and Services Tax (GST) Bill passed in the first monsoon session of the Parliament will be a key step to prove India’s strong fundamentals, said Jayant Sinha is the Minister of State for Finance. Sinha believes with an aggressive growth and reforms agenda in almost all the important institutions, India remains a haven of stability in increasingly turbulent times in the world. Fundamentals necessary for India to become competitive in the global scenario are all in its favour, Sinha stated. If Britain decides to leave, market adjustment process will happen and the government will provide liquidity in close collaboration with the leaders around the world, he told CNBC-TV18.Don't miss: Pound, Asia markets collapse as Britain quits EU

Market mayhem continues on Dalal Street as UK decides to leave European Union. The Sensex is down 940.99 points or 3.5 percent at 26061.23, and the Nifty down 297.50 points or 3.6 percent at 7972.95. About 182 shares have advanced, 1911 shares declined, and 73 shares are unchanged.

Tata Motors, Tata Steel, ICICI Bank, Axis Bank and SBI are losers in the Sensex. Auto, banks, metals are bleeding.

Britain has voted to leave the European Union, results from Thursday's landmark referendum showed, an outcome that sets the country on an uncertain path and deals the largest setback to European efforts to forge greater unity since World War Two.

World financial markets dived as nearly complete results showed a 51.8/48.2 percent split for leaving. Sterling suffered its biggest one-day fall of more than 10 percent against the dollar, hitting a 31-year low on market fears the decision will hit investment in the world's 5th largest economy.

The vote will initiate at least two years of messy divorce proceedings with the EU, raise questions over London's role as a global financial capital and put huge pressure on Prime Minister David Cameron to resign, though he pledged during the campaign to stay on whatever the result.