The benchmark BSE Sensex plunged over 600 points in today's trade as Britain voted to leave the European Union, fuelling a wave of global uncertainty.
The heavy selling on Friday in the domestic equity markets forced 64 stocks on the National Stock Exchange (NSE) to hit their fresh 52-week low. The benchmark BSE Sensex plunged over 600 points in today’s trade as Britain voted to leave the European Union, fuelling a wave of global uncertainty. Nifty on the National Stock Exchange tumbled 181.85 points, or 2.20 per cent, at 8,088.60.
Stocks such Thyrocare Technologies hit their new 52-week low of Rs 523.20 in Friday’s trade. Others such as Aarti Drug (Rs 431.60), BEML (Rs 788), Bharat Forge (Rs 682), Mandhana Industries (Rs 129.80), Nitin Fire (Rs 27) and Zee Learn (Rs 26.50) also hit their new 52-week lows in trade.
Read more: Pound slips to over 30-year low
MRF also hit its new 52-week low of Rs 30,101 in today’s trade. For complete list: See table New 52-week low
Anurag Jain, market development lead, Thomson Reuters Risk Business, said, “Brexit again demonstrates that India market is more and more susceptible to global events and unlike 2008, the economy is much more integrated with global markets today.”
Now the fears are also growing that other EU members too will push for referendums, posing the biggest threat to the future of grouping since its inception almost 60 years ago.
However, Economic Affairs Secretary Shaktikanta Das downplayed the fears and stated that Britain’s decision to move out of the 28-member European Union (EU) won’t significantly impact India’s trade.
Global cues also remained awful with European counters witnessing mayhem in early deals and CAC, DAX and FTSE all trading with a cut between 4-8 per cent in early deals, as David Cameron announced his resignation as Prime Minister of the United Kingdom after the shock victory for the campaign to leave the European Union.
Asian counters also fell sharply with Japan’s Nikkei, Hong Kong’s Hang Seng, China’s Shanghai Composite and Singapore’s Straits Times down between 1-8 percent.
(With inputs from Ace Equity)