Battered by Brexit, Sensex still trades at premium to peers

By: | Updated: June 25, 2016 8:59 AM

With global financial markets not having pencilled in a Brexit, the rout in global stock markets on Friday was a severe one. In India, the Sensex crashed more than 1,000 points before recovering some ground to end the session at 26,397.71, a loss of well over 2% or 605 points.

With global financial markets not having pencilled in a Brexit, the rout in global stock markets on Friday was a severe one. In India, the Sensex crashed more than 1,000 points before recovering some ground to end the session at 26,397.71, a loss of well over 2% or 605 points.

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As Andrew Holland, CEO, Ambit Investment Advisors, pointed out, the UK exiting the EU might have far reaching effects on the world economy, including that of India’s, and it was way too early to gauge them accurately. “It’s a huge negative shock. The ramifications are far reaching. Globally, central banks are dictating policies and people are tired. The fear now is Europe could disintegrate.”

Also Read: How will Britain weather the Brexit storm? With great difficulty

Even after Friday’s selloff, the Indian market continues to trade at a significant premium to its peers, market participants point out.

 

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