Pre Session-Brexit jitters may take toll on D-Street
24/06/2016
Indian equity benchmarks are likely to witness a significant gap down opening on Friday with investors across the globe nervous about the outcome of Thursday’s EU referendum in the UK. Early results from the Brexit referendum indicated a tight race with a slim lead for the “leave” camp at 51.4% of the votes casted so far, sending the pound to its biggest ever drop and pushing Asian markets deep in the red. The CNX Nifty Index Futures for June delivery plunged by 2.32 per cent or by 188.5 points to 8,111.5 at 11:00 AM Singapore time, signaling that Dalal Street may open on a bearish note today. Domestic bourses are likely to see a volatile day of trading as Britain’s future in the European Union is decided. Economists, central bankers and analysts have warned that a ‘Leave’ win may have severe long-term repercussions on Britain’s economy and may cause a knee-jerk reaction on global financial markets, adversely affecting capital flows to emerging markets. However, the Indian government has allayed fears over the potential impact of Brexit on the country’s economy, given its strong forex reserves kitty and its position as a leading global investment destination. The 30-share Sensex on Thursday rallied by 236.57 points or by 0.88 per cent to end at 27,002.22 as traders awaited the outcome of the Brexit referendum to decide whether Britain stays in the EU or parts ways.
Asian stocks tumbled as early results indicated better than expected support for Britain leaving the EU, hurting risk taking appetite. China’s Shanghai Composite fell, Hang Seng tumbled over 3 per cent and Japan’s Nikkei 225 also sank 3 per cent as the yen’s rise took severe toll. It could be a very nervy day for markets across Asia as Brexit results trickle in and the country’s future is decided. Overnight, Wall Street surged, with the Dow Jones Industrial Average posting its biggest gain since March, as investors shrugged off Brexit fears.
24/06/2016
Indian equity benchmarks are likely to witness a significant gap down opening on Friday with investors across the globe nervous about the outcome of Thursday’s EU referendum in the UK. Early results from the Brexit referendum indicated a tight race with a slim lead for the “leave” camp at 51.4% of the votes casted so far, sending the pound to its biggest ever drop and pushing Asian markets deep in the red. The CNX Nifty Index Futures for June delivery plunged by 2.32 per cent or by 188.5 points to 8,111.5 at 11:00 AM Singapore time, signaling that Dalal Street may open on a bearish note today. Domestic bourses are likely to see a volatile day of trading as Britain’s future in the European Union is decided. Economists, central bankers and analysts have warned that a ‘Leave’ win may have severe long-term repercussions on Britain’s economy and may cause a knee-jerk reaction on global financial markets, adversely affecting capital flows to emerging markets. However, the Indian government has allayed fears over the potential impact of Brexit on the country’s economy, given its strong forex reserves kitty and its position as a leading global investment destination. The 30-share Sensex on Thursday rallied by 236.57 points or by 0.88 per cent to end at 27,002.22 as traders awaited the outcome of the Brexit referendum to decide whether Britain stays in the EU or parts ways.
Asian stocks tumbled as early results indicated better than expected support for Britain leaving the EU, hurting risk taking appetite. China’s Shanghai Composite fell, Hang Seng tumbled over 3 per cent and Japan’s Nikkei 225 also sank 3 per cent as the yen’s rise took severe toll. It could be a very nervy day for markets across Asia as Brexit results trickle in and the country’s future is decided. Overnight, Wall Street surged, with the Dow Jones Industrial Average posting its biggest gain since March, as investors shrugged off Brexit fears.
