Brexit jitters remain; Sensex gives up some losses to close 604 points down, Nifty settles below 8,100; Metal, realty drag

By: | Updated: June 24, 2016 5:52 PM

Market benchmark indices BSE Sensex and NSE Nifty plunged over 2 per cent on Friday as UK's vote to exit European Union sent financial markets into a tailspin.

BSE Sensex NSE NiftyMarket benchmark indices BSE Sensex and NSE Nifty plunged over 2 per cent on Friday as UK’s vote to exit European Union sent financial markets into a tailspin. (Photo: Reuters)


Market benchmark indices BSE Sensex and NSE Nifty plunged over 2 per cent on Friday as UK’s vote to exit European Union sent financial markets into a tailspin.

Sensex closed 604.51 points, or 2.24 per cent, down at 26397.71, while Nifty index settled 193.90 points, or 2.34 per cent, down at 8,076.55.

Among the 51 components in the Nifty pack, six ended the day in green with GAIL advancing the most — 0.65 per cent, followed by Mahindra & Mahindra (up 0.60 per cent), Asian Paints (up 0.60 per cent), Bajaj Auto (up 0.39 per cent) and Cipla (up 0.16 per cent).

Read more: IT sector takes a hit on Brexit from EU; shares plunge

On the other hand, Tata Motors, Tata Motors DVR, Tata Steel, Hindalco and Larsen & Toubro slid 8.25 per cent, 7.50 per cent, 6.59 per cent, 5.73 per cent and 4.82 per cent, respectively.

Sectorwise, the BSE Realty index and BSE Metal index plunged over 3.50 per cent. Rest all other sectoral indices on the exchange also ended in red.

Anand James, chief market strategist, Geojit BNP Paribas Financial Services said, “When compared with the dramatic falls that Brexit have effected upon currencies and stocks across globe, it is fair to say that India has held its own, as reflected by the sharp recovery in equities. Rupee initially weakened by almost a percentage, but strengthened through the day. Both are testimony to the strength of the domestic cues, but a close by over 2% lower witnessed in key indices is suggestive that uncertainties remain.”

Other Asian peers also closed the day with deep losses on Friday.

3.01 pm: The BSE IT index was trading 2.23 per cent down at 11,294.49. Brexit is “negative” for the Indian IT industry in the short, and medium-term, former CEO and Managing Director of software major Infosys S Gopalakrishnan said today. Read more

2.10 pm: Sensex wiped off some losses and was trading 662 points down at 26,339. Nifty was down 206 points at 8,063.2.30 pm: Meanwhile, Moody’s ratings agency said on Friday that Britain’s vote to leave the European Union was “credit negative” for Britain’s sovereign ratings and for other issuers in the country.

1.30 pm: Zeal Aqua is coming out with an initial public offering (IPO) of 11,35,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 130 per equity share. The issue will open on June 27, 2016 and will close on June 30, 2016. The shares will be listed on SME platform of BSE. The share is priced 13 times of its face value of Rs 10.

Read more: ‘Brexit will be shrugged off soon by Indian markets, monsoon progress will remain’

1.07 pm: All the sectoral indices on the BSE were trading in red. The BSE Realty index was down over 6 per cent, followed by BSE Metal (5 per cent). Read more

12.39 pm: Financial services major Ambit Investment Advisors’ CEO Andrew Holland said Brexit is a huge negative and has far reaching ramifications for global markets and economies. Sensex was trading 973 points down at 26,029.

12.01 pm: 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.

Read more: Brexit good buying opportunity; monsoon another key factor to watch

11.57 am: Meanwhile, NSE’s volatility index, the domestic equivalent of the VIX fear gauge, soared 16.81 per cent to highest since February 19, 2016. Read more

Also read: Stock markets, commodities, rupee: What experts feel post Brexit

11.17 am: All the 30 components in the BSE Sensex pack were trading in red. Sensex was down 979 points at 26,022. Traders also failed to take any sense of relief some report that the Reserve Bank may slash interest rates on the possibility that inflation will continue to remain high even if monsoon are normal.

sensex gainer loser june 24 2016

10.34 am: According to reports, HSBC cut UK pound forecast to $1.20 by year end. The currency on Friday plunged nearly 10 per cent to its lowest level since September 1985.

Also read: Stock markets, commodities, rupee: What experts feel post Brexit

10.31 am: Tata Motors’ subsidiary — Jaguar Land Rover (JLR) has started recalling more than 11,000 vehicles in China due to faulty crankshaft sensors. The recall affects 6,067 imported Land Rover Discovery 4 SUVs manufactured between April 2012 and October 2012. Apart from that, 5,214 imported Range Rover models produced between April 2012 and October 2012; and one New Range Rover car made on May 9, 2012 will be recalled. Faulty crankshaft position sensors may cause the engine to stall when driving.

At 10.04 am: Sensex plunged over 1,000 points at 25997. Nifty was trading 313 points at 7,959.

9.52 am: Rupee crashed by 96 paise to breach the 68-level against the US dollar in the early trade today as leads show ‘Leave’ camp ahead in the UK referendum vote.

9.45 am: The camp in favour of Britain’s exit from the European Union (EU) was leading by four percentage points over the Remain camp with over 70 per cent of results declared in the referendum today as a BBC forecast said the results were for ‘Brexit’. Sensex was down 801 points at 26,201. Nifty was trading 251.55 points down at 8,018.

9.36 am: Among the 51 components in the Nifty pack, Sun Pharma was trading in green with gains of 1.32 per cent. Rest all other components were trading in red. Tata Motors, Tata Motors DVR, ICICI Bank and Tata Steel was trading down between 5-9 per cent.

9.24 am: Meanwhile, Tata Motors shares plunged as much as 13 per cent on Brexit jitters. The scrip was trading 8.62 per cent down at Rs 445.95.

9.16 am: Sensex was trading 928 points down at 26074.14. Nifty was trading 241.35 points down at 8,029. Rupee nosedives 88 paise against US dollar to below 68 mark in early trade as leads show ‘Leave’ camp ahead in ‘Brexit’ referendum vote.

9.15 am: Nifty and Sensex plunged over 3 per cent in the opening trade.

9.05 am: Nikkei plunged over 1,000 points.

8.53 am: Meanwhile, pound plunged over 9 per cent against dollar to its lowest level since September 1985. With half of 382 counting areas declared, the ‘Leave’ camp was put at 51.3 per cent against 48.7 percent for ‘Remain’, according to Reuters calculations. SGX Nifty was trading 2.18 per cent down at 8,123.

8.13 am: Domestic benchmark indices BSE Sensex and NSE Nifty are set to open lower on Friday tracking Nifty futures on the Singapore Stock Exchange (SGX Nifty) and weak global cues.

At 7.49 am, SGX Nifty was trading 104.50 points, or 1.28 per cent, at 8195.50.

Carnage came to world markets on Friday as early voting returns suggested Britain was on the brink of leaving the European Union, threatening the existent of the entire bloc and its single currency. Asian peers, Hang Seng, Nikkei and Shanghai were trading down by 1.92 per cent, 0.97 per cent and 0.53 per cent, respectively.

Read more: How ‘Brexit’ will impact Indian commodity markets

The British pound seesawed wildly on Friday and betting markets dramatically shortened the odds on Britain leaving the European Union as increasingly mixed signals challenged earlier market anticipation of a narrow victory for “remain.” UK Pound was trading down by 6.5 per cent against dollar.

The BSE Sensex on Thursday logged a surprise rally of 237 points to reclaim the 27,000-mark, in line with strong gains in Europe-based shares.

US stocks also rallied on Thursday, led by bank shares, as Wall Street bet strongly that Britain is voting to remain part of the European Union, potentially avoiding a hit to European trade and its consequences to global economic growth. The Dow Jones industrial average rose 230.24 points, or 1.29 per cent, to 18,011.07, the S&P 500 gained 27.87 points, or 1.34 per cent, to 2,113.32 and the Nasdaq Composite added 76.72 points, or 1.59 per cent, to 4,910.04.

Shares of companies such as Tata Motors, Bharat Forge, Apollo Tyres, TCS and others which have some exposure to the UK will remain in focus today.

(With agency inputs)

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