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Last Updated : Jun 23, 2016 09:58 AM IST | Source:

Sensex, Nifty open flat ahead of Brexit vote; Tata Motors gains

The Sensex is down 3.27 points at 26762.38, and the Nifty down 3.85 points at 8199.85. About 415 shares have advanced, 271 shares declined, and 32 shares are unchanged.

Moneycontrol Bureau

9:55 am Interview: 
Biocon has initiated phase II/III study of QPI-1007 to treat non-arteritic anterior ischemic optic neuropathy (NAION), a rare eye disease in India. Speaking to CNBC-TV18, Kiran Mazamdar Shaw, CMD of the company said Biocon had entered into researching the drug for this disease a year ago and that early trials have indicated a positive data.

However, the drug won't enter the market before 2-3 years, she added.

9:45 am FII view: Jeff Chowdhry of LGM Investments feels if Britain votes to leave the European Union, it would cause a sort of a ripple effect across both European stock markets and the European currency investors may move into the yen or gold or US dollar.

In an interview to CNBC-TV18, he says emerging markets too would be hit as investors turn risk averse.

“In the short-term and short-term means just a couple of days, I think yes because it would definitely be a surprise. Secondly, it would mean risk-off and in a risk-off environment, EMs including India would be affected on sort of a short-term basis,” he says.

9:30 am New IPO: 
Varun Beverages, franchisee for soft drinks maker PepsiCo, today filed preliminary papers with Sebi for an IPO to raise over Rs 1,000 crore.

The IPO entails sale of up to 2.5 crore shares, including fresh issue of 1.5 crore shares and offloading of stake by promoters. The company has filed the draft red herring prospectus with the Securities and Exchange Board of India (Sebi), it said in a release.

Sources said Varun Beverages expects to raise more than Rs 1,000 crore through the initial public offer. Apart from fresh issue of 1.5 crore equity shares, there would be offer for sale of up to 5,000,000 shares each by Varun Jaipuria and Ravi Kant Jaipuria & Sons (HUF), the release said.

Don't miss: Annual report analysis: Credit Suisse outperform on ITC, FY16 cash flow up


The market has opened flat ahead of ahead of the EU referendum Thursday. UK will vote to determine the future of Britain within the 28-member European Union. The Nifty’s support is seen around 8,050-8,100 while resistance is likely around 2016 high of 8273.

The Sensex is down 3.27 points at 26762.38, and the Nifty down 3.85 points at 8199.85. About 415 shares have advanced, 271 shares declined, and 32 shares are unchanged.

Tata Motors, Lupin, Dr Reddy's Labs, Coal India and Sun Pharma are top gainers while NTPC, ONGC, HDFC Bank, Tata Steel and TCS are losers in the Sensex.

The Indian rupee opened marginally higher at 67.43 per dollar on Thursday versus previous close 67.48.

The pound climbed to a 2016 high, bringing higher-yielding currencies up with it as confidence mounted that the UK will vote to remain a member of the european union in Thursday's referendum.

Mohan Shenoi of Kotak Mahindra Bank said, "Global currency markets are expected to stay flat in a tight range a day prior to Brexit referendum. Markets are
currently expecting UK to vote for 'remain in EU'. However, a Brexit vote can cause volatility in currency markets particularly in EM currencies."

Among global markets, Asia were mixed in early trade, following losses in US stocks, as investors remained on edge ahead of the UK vote on whether to leave the European Union (EU).  In Japan, the Nikkei 225 was up 0.24 percent, while across the Korean Strait, the Kospi was down 0.39 percent.

US stocks closed lower weighed by declines in energy stocks. The Dow Jones industrial average closed down 48.90 points, or 0.27 percent, at 17,780.83. The S&P 500 closed down 3.45 points, or 0.17 percent, at 2,085.45. The Nasdaq composite closed down 10.44 points, or 0.22 percent, at 4,833.32.

In other asset class, gold fell to a two-week low after its biggest one-day drop in four weeks, as expectations that Britain will vote to remain in the European Union reduced risk aversion.

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First Published on Jun 23, 2016 09:15 am
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