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Last Updated : Jun 24, 2016 11:05 AM IST | Source: Moneycontrol.com

Sensex falls 1000 pts; UK becomes 1st country to leave EU

Nomura says Brexit may likely delay Fed rate hike. It expects US rate hike only in December.


Moneycontrol Bureau

10:59 am
The Sensex fell 982.82 points or 3.64 percent to 26019.40 and the Nifty slipped 310.85 points or 3.76 percent to 7959.60.

About 10 shares declined for every share advancing on BSE.

10:58 am IIFL on market:
Selling-off which is expected now will impact markets. However, 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.

10:56 am Citi says
, "We do not expect a post-Referendum compromise or prospect for a counter-offer from the EU that would reverse the result of the referendum. We expect EU Heads of States and Governments to meet
perhaps as early as Saturday and issue a statement respecting the result, while reassuring the rest of the EU that contingency plans are in place."

10:54 am
Sajjan Jindal, chairman, managing director of JSW Steel says markets and currencies will nosedive on Brexit. It will be one historic divorce this Britain leaving the EU.

10:53 am Expert:
Brexit will dominate the headlines for a few days till the attention of the world is diverted to some new event, says Rajeev Thakkar, CIO, PPFAS Mutual Fund.

"Britain was never a part of the single currency and the impact on business fundamentals is expected to be at the margins. The knee-jerk reaction seems to be on account of the fact that most people expected a verdict of remain in the EU and the vote has turned out to be exit. Selective buy opportunities may emerge in the turmoil."

10:52 am
UK independence party leader says, "June 23 is our independence day."

10:49 am
Deutsche Bank on Brexit: Extreme reaction in UK pound is right, says Deutsche, adding pound-dollar is likely to reach 1.3 today.

Close

The brokerage expects Bank of England to ease but extent depends on forex move.


French 10-year bond yields hit record low after UK votes for leave Euroepan Union.

10:45 am Market Update
: Equity benchmarks cracked after the UK voted for leaving European Union.

The Sensex lost 922.23 points or 3.42 percent at 26079.99, and the Nifty fell 291.70 points or 3.53 percent at 7978.75.

About 1884 shares declined against 175 advancing shares on BSE.


German 10-yr bond yields at record low

10:42 am Brexit reactions:
Nomura says Brexit may likely delay Fed rate hike. It expects US rate hike only in December.

10:39 am Economic Affairs Secy on Brexit: 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.

10:35 am 
UK votes for Brexit is final as "Leave' gets 51.8 percent votes.

10:30 am
'Leave' needs 37,665 more votes to win.


HSBC cuts UK pound forecast to $1.20 by year-end. Currently, pound trades at 1.3383 a dollar, down over 10 percent.


Equity markets extended loses with the Sensex falling more than 1000 points.

10:28 am 
The pound plunged to a more-than-30-year low against the dollar and the safe-haven yen surged as results of the referendum on whether to stay in the European Union (EU) showed the UK was on course to leave, according to the latest media projections.


10:25 am Market Expert: 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.

10:22 am RBI supports rupee:
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 68.10 to the dollar, 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.


The currency was plunging in line with Asian currencies after a referendum in Britain appeared to be leaning towards leaving the European Union.

10:20 am
Media agencies predicted that Britain leaving European Union is imminent now as majority of votes are in favour of leave than remain. 'Leave' needs 3.7 lakh votes to win.

10:18 am
UK pound fell 10 percent against US dollar on Brexit concerns, trading at 1.3408 a dollar.


'Leave' needs 5.2 lakh votes to win. Nifty slipped below 50-DMA, down 3.6 percent to 7969.

10:14 am Tech Mahindra on Brexit:
With Brexit becoming imminent how it would impact the Indian information technology companies that are exposed to UK, is the big question.


Vineet Nayyar, Executive VC, Tech Mahindra does not see a significant impact on Indian IT companies. According to him the sterling may fall but it will have only a marginal impact for them. He said, they keep facing these kind of currency problems time and again.


Although their exports to UK form 20-25 percent of their total revenues, he is not overly worried because the currency will float back according to him. “These are temporary movements, UK economy is strong,” he said.

10:13 am
All Nifty, Nifty Bank & Midcap Index stocks continued be in the red. Dow futures fell almost 700 points, indicating weak opening on Wall Street.


10:10 am Britain to leave in European Union needs 7.41 lakh votes to win. So far 'leave' has 51.8 percent of votes counted.

10:05 am Expert view:
Volatility in commodities and markets all over has increased with UK votes tipping towards a 'leave' for the UK. The pound has lost 10 percent already.

“It is bad news,” says CNBC-TV18’s Consulting Editor Udayan Mukherjee. Brexit, he says, will not be a one-time issue, but will impact markets over the medium-term.

If the UK leaves, other countries in the EU too might follow the lead. “When the big boy goes, a lot of small boys will go tagging along,” he says. Continuing issues in China and the Brexit could drive the markets towards a recession.

While 2008’s Lehman was a financial problem, Brexit will be an economical and political issue and is likely to be more dangerous. It can have serious ramifications over the next 2-3 years.

10:00 am Market Check:
The market remained under pressure in morning trade, tracking weakness in global peers after the Brexit is imminent.


The 30-share BSE Sensex plunged 926.10 points or 3.43 percent to 26076.12 and the 50-share NSE Nifty fell 289.80 points or 3.50 percent to 7980.65.


The market breadth was pathetic as about 12 shares declined for every share advancing on Bombay Stock Exchange.

Asian markets hit very badly with the Nikkei falling 1100 points and Hang Seng down 4.7 percent.



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First Published on Jun 24, 2016 10:00 am
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