Tech Mahindra slumps over 7 per cent as Brexit becomes reality

By: | Updated: June 24, 2016 5:02 PM

Tech Mahindra stocks slumped over 7 per cent on Friday after Britain decided to exit from the European Union in a referendum. The company gets around 20-25 per cent export from UK.

Tech Mahindra sharesTech Mahindra stocks slumped over 7 per cent on Friday after Britain decided to exit from the European Union in a referendum. The company gets around 20-25 per cent export from UK. (Photo: Reuters)

Tech Mahindra stocks slumped over 7 per cent on Friday after Britain decided to exit from the European Union in a referendum. The company gets around 20-25 per cent export from UK.

At 12.46 pm, stocks price of the company were trading 5.41 per cent down at Rs 503.25. The scrip opened at Rs 514.95 and has touched a high and low of Rs 516.95 and Rs 493.95, respectively, in trade so far. Later, the scrip closed 4.74 per cent down at Rs 506.85.

Vineet Nayyar, executive vice-chairman, Tech Mahindra in an interview with CNBC-TV18 said, “there will be a marginal effect of Brexit on the company’s profit and we do not see any significant impact.” He added that UK economy is strong and will overcome this minor fluctuation.

Indian companies with an exposure to EU will be affected due to currency fluctuations. The pound fell to its lowest level since 1985 as the unit took a beating on concerns over Brexit.

Metal companies like Tata Steel and Hindalco, auto majors such as Tata Motors, Motherson Sumi, IT companies like TCS, Tech Mahindra, HCL Tech and Pharma companies like Lupin, Dr Reddy’s Laboratories are the companies with exposure to UK and will get impacted from Brexit.

The UK has voted to leave the European Union after 43 years as the ‘Brexit’ camp took a lead over the ‘Remain’ camp in a down-to-wire referendum with far reaching implications for the world.

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