Benchmark BSE Sensex plunged by over 1,000 points and Nifty breached the psychological level of 8,000 in the morning trade on Friday.
Benchmark BSE Sensex plunged by over 1,000 points and Nifty breached the psychological level of 8,000 in the morning trade on Friday. At 10.10 am, the 30-share index was trading 934.19 points, or 3.46 per cent, down at 26,068.03, while the 50-share index was trading 298.20 points, 3.61 per cent down at 7,972.25.
Later, Sensex closed 604.51 points down at 26397, while Nifty settled 181.85 points down at 8,088.
Also Read: Brexit Day: These 64 stocks hit their fresh 52-week low on NSE
Below are 5 reasons why domestic equity markets are under pressure in today’s trade:
1) Weak Global Cues: Heavy selling pressure hit to world markets on Friday as UK referendum suggested that Britain is on the verge of leaving the European Union, threatening the existent of the entire bloc and its single currency.
2) Rupee: Indian Rupee crashed by 96 paise to breach the 68-level against the US dollar in the early trade as leads show ‘Leave’ camp ahead in the UK referendum vote.
3) On the domestic front, companies having some exposure in the UK markets were trading in red with Tata Motors falling nearly 13 per cent intraday. It put further pressure on Indian equity markets.
4) Monsoon: Sentiments also got undermined with the report that monsoon rains in India were 7 per cent below average in the week ending June 22, 2016. The June-September monsoon rains have remained 18 per cent low so far, but have covered almost the entire country.
5) Further, there are fears that the UK operations of several Indian companies might take a hit due to immigration and other restrictions that might come in because of Brexit.