Global equity and currency markets crashed on Friday as Britain voted for leaving the European Union.
The benchmark Sensex plummets by 604.51 points to close at 26,397.71 points and Nifty 181.85 points to close at 8,088.60.
Sentiment suffered a jolt following a meltdown in global equities after referendum result indicated Britain would leave the European Union, triggered all-round selling, dragging down the key indices from their key levels.
Live updates
4.06 p.m.: Even as Britain’s decision to leave the European Union will require Indian companies to re-work their business strategy in the region, it will not have a major impact on them in the mid-long term time frame, according to India Inc. European markets is one of the key drivers for Indian companies investing in the UK…With the UK voting to leave the EU, Indian companies will re-engineer their European strategy. This should not be an issue. India will not be affected due to Brexit if we look at a mid to long term perspective,” CII President Dr. Naushad Forbes said.
3.50 p.m.: Sensex plummets 604.51 points to end at 26,397.71; Nifty nosedives 181.85 points to 8,088.60
3.15 p.m.: Swiss central bank says it has intervened in currency markets to limit franc’s rise after UK vote.
3.10 p.m.: The stock market recovered slightly but are still trading in the red with Sensex down by 575.57 points to 26,426.65 and Nifty 174.35 points to 8,096.10. As percentage Sensex and Nifty were down by 2.13 p.c. and 2.11 p.c. respectively.
3.06 p.m.: Reserve Bank of India fixed the reference rate of the rupee at 68.0144 against the U.S. dollar and 75.1015 for the euro. >Read more
3.05 p.m.: ECB says ready to provide additional liquidity after Brexit vote Eurozone banking system 'resilient in terms of capital, liquidity', says ECB
3.00 p.m. : Brexit will provide the country better market access to the EU and England, even as there will be some market volatility, State Bank of India Chairperson Arundhati Bhattacharya said. “As risk aversion sets in, there would be a decline in financial markets and India would see this impact along with other nations. But as trade strategies are reworked there could be potential advantages in the form of better market access for India to the EU and Britain,” Ms. Bhattacharya said. >Read more
2.47 p.m.: Britain’s exit from the European Union will have a muted impact on the over USD 17 billion Mahindra Group, but the event highlights the importance of sound risk management for the corporate world, the Group said. The farm equipment to aerospace group, which has presence in the UK mostly in the IT and auto sectors, however said Brexit will result in uncertainty in the immediate aftermath which will moderate over time
2.29 p.m. : Tata Sons termed access to markets and skilled workforce as “important considerations” after Britain voted in favour of leaving the European Union and said that each of its 19 firms having interests in the UK will do a business review. >Read more
2.15 p.m.: Sensex and Nifty recovered from early heavy losses and were trading at 26,372.86 and 8,079.25 down by 629.36 and 191.20 points respectively.
2.00 p.m.: Britain’s exit from the European Union will mark a phase of uncertainty for the $108-billion Indian IT sector in the near-term, industry body Nasscom said. However, in the longer run it will be a mix of challenges and opportunities as the UK would seek to compensate for loss of preferential access to EU markets. >Read more
1.29 p.m.: Bank of England 'stands ready to provide' £250bn. >Read more
1.28 p.m. : The Russian rouble fell against the dollar as did Russian stocks on Friday, tracking global markets and the oil price lower after Britain voted to the leave the European Union.
1.26 p.m.: Bank of England's Carney said all liquidity resources will support market functioning. He further added "In future we will not hesitate to take any additional measures required."
1.22 p.m. : Gold zooms Rs 1,205 to hit 22-month high of Rs. 30,875 per ten gram in New Delhi.
1.20 p.m.: Sensex and Nifty were still in the red, down by 797.77 and 245.55 points respectively.
1.13 p.m. : As Britain voted to exit the EU, Tata Motors-owned Jaguar Land Rover on Friday said it is “business as usual” and will manage the long-term impact and implications of the decision, insisting “nothing will change” overnight for it and the automotive industry. >Read more
1.10 p.m.: Deutsche Boerse, LSE stand by merger plans despite Brexit vote
1.09 p.m.: Switzerland's central bank said it had "intervened" in the foreign exchange market to stabilise the Swiss franc, considered a safe haven currency, following the so-called Brexit vote.
1.07 p.m. : British government bonds surged as investors bought into their relative safety following Britain's vote to leave the European Union. The yield on the benchmark 10-year government bond, or gilt, dropped to 1.014 per cent, its lowest level ever.
12.53 p.m. : London stocks plunged around eight per cent in opening deals, with share prices of banks and housebuilders collapsing by about a third after Britain voted to leave the EU. The British capital's FTSE 100 index shed 7.7 per cent to 5,851.01 points shortly after the start of trading, with housebuilder Taylor Wimpey losing 32 per cent, and Barclays and Royal Bank of Scotland each shedding roughly 28 per cent.
12.43 p.m. : Sensex and Nifty were down by 922.75 and 290.15 points respectively.
12.26 p.m.: Sensex and Nifty were still in the red down by 1072.21 points and 335.70 points respectively.
12.23 p.m.: Gold rallied the most since the 2008 global financial crisis and oil and copper tumbled on Friday, as Britain's vote to leave the European Union rattled commodities markets, forcing a selloff in risky assets and a rush to safe havens. >Read more
12.13 p.m.: Gold prices breached the Rs 32,000 per 10 gram mark by climbing Rs 1,944 per 10 gram in futures trade amid a firm global trend as the rupee breached the 68-mark against the dollar. >Read more
12.10 p.m.: Central European currencies fell in early trade after Britain voted to quit the European Union, with the Polish zloty leading falls by plunging about 3.4 per cent and hitting a four and a half year low against the euro.
12.05 p.m.: Volatility prevailed in the stock markets as Sensex oscillated and down by 1016.88 points and Nifty by 320.75 points.
11.58 a.m.: Shares of companies with exposure to the UK witnessed massive selling pressure, plunging up to 13 per cent, following the UK’s vote to exit the European Union. Reacting to this, shares of Tata Motors slumped 12.9 per cent and Tata Steel tanked 10.89 per cent on BSE as reports from the UK showed Britain voting against remaining in the EU block.
11.55 a.m.: Sensex and Nifty were still in the red and were down by 988.27 points at 26,013.95 and 306.90 points at 7,963.55 respectively.
11.54 a.m.: Tokyo's benchmark stock index nosedived almost eight percent Friday as Britain's decision to leave the European Union sparked a market bloodbath. The Nikkei 225 plunged 7.92 percent, or 1,286.33 points, to 14,952.02 in its biggest one-day plunge since Japan's 2011 quake-tsunami disaster.
11.47 a.m.: German government bond prices rose sharply as money poured in from investors seeking safety after Britain voted to leave the European Union. This pushed the yield on the benchmark 10-year German government bond into negative territory for only the second time in its history, to -0.14 per cent.
11.43 a.m. : Dr. Rajan said RBI prepared for any eventuality, will intervene in currency markets when necessary; Rupee’s fall lesser than many other currencies. >Read more
>#RaghuramRajan on >#Brexit : Indian economy has good fundamentals, low short term external debt, and sizeable foreign reserves >@the_hindu>@RBI
— Manojit (@monstermanojit) >June 24, 2016
>#RaghuramRajan on >#Brexit : Markets are trying to factor the consequences of this development >@the_hindu>@RBI (1/2)
— Manojit (@monstermanojit) >June 24, 2016
>#RaghuramRajan on >#Brexit " and this has already led to sharp corrections in financial markets around the world" >@the_hindu>@RBI (2/2)
— Manojit (@monstermanojit) >June 24, 2016
>#RaghuramRajan on >#Brexit :Will take necessary steps, incl liquidity support 2 ensure orderly conditions in financial mkt >@the_hindu (2/2)
— Manojit (@monstermanojit) >June 24, 2016
11.41 a.m.: Volatility witnessed in the stock markets as Sensex down by 994.48 points at 26,007.74 and Nifty by 313.65 points at 7956.80.
11.35 a.m.: The Reserve Bank of India (RBI) watching all markets, including currencies, and will provide liquidity wherever necessary, says Governor Raghuram Rajan on Brexit impact.
11.33 a.m.: Volatile sensex again down by more than 1022.12 points at 25,980.10.
11.32 a.m.: Playing havoc, 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.
11.31 a.m.: Hong Kong stocks plunged more than five per cent on Friday afternoon after Britain voted to leave the EU, sparking a rout across Asian equity and currency markets. The Hang Seng Index shed 5.11 percent, or 1,067.34 points, to 19,801.00
11.30 a.m.: The rupee took a sharp plunge of 96 paise against the US dollar to crash below the 68-level as Britain’s vote for leaving the European Union played havoc in global markets, but RBI intervention to infuse liquidity helped the local currency recoup some early losses. >Read more
11.27 a.m.: Sensex and Nifty are still in the red down by 963.69 points at 26,038.53 and 304.30 at 7,966.15.
11.20 a.m.: Strongly committed to macroeconomic framework with rock solid commitment to fiscal discipline, Mr. Jaitley.
11.20 a.m.: Aim will be to smoothen volatility and minimise Brexit impact on the economy in the short-term, says Union Finance Minister Arun Jaitley. >Read more
Rupee Tumbles As Markets Factor A >#Brexit ; Pound Drops 9% >https://t.co/L7H6T24m4x>@oneindiamoney>pic.twitter.com/kYsZTNGpa6
— karnataka.com (@karnatakacom) >June 24, 2016
11.13 a.m.: The meltdown in Sensex and Nifty continued as they were still trading in the red by 980.97 points to 26,021.25and Nifty by 311.15 points to 7959.30.
11.05 a.m : Sensex still trading in the red by 973.33 points and Nifty by 309.60 points respectively.
Some important tweets on Brexit and the resultant Sensex reaction
#BrexitOrNot Good opportunity to buy,a strong downward reaction like this one does not happen often, local factors not damaged bue to Brexit. Impact of Brexit - hesitation in investments till the currency value stabilise, hot money could slow down coming to emerging markets. — Deena Mehta, Managing Director, Asit C Mehta Investment Intermediates
Nemesis solution to Britain. Divide in two parts. One which will stay in EU. The other can be Out of EU. Divide and Rule Medicine for you. — Nilesh Shah, Managing Director, Kotak Mahindra Mutual Fund
More disorderly price action as the potential significance of #Brexit imposes itself on #markets that had assumed status quo would prevail. — Mohamed El Erian, Chief Economic Advisor, Allianz
Disappointed to wake up to #Brexit news. Long-term implications for India & the world unclear but probably a good time to buy @SENSEX_BSE? — Milind Deora, Congress leader
Disappointed to wake up to >#Brexit news. Long-term implications for India & the world unclear but probably a good time to buy >@SENSEX_BSE ?
— Milind Deora (@milinddeora) >June 24, 2016
10.58 a.m.: Pakistani shares fell 2 per cent in early trading, hurt by a global sell-off in risk assets after Britain voted to leave the European Union. At 1017 local time (0517GMT), the benchmark 100-share index of the Pakistan Stock Exchange traded 1.96 per cent lower at 37,484.18 points.
10.53 a.m.: Sensex and Nifty recoup losses but still down by 945.40 and 297.25 points respectively.
10.42 a.m. : Sensex and Nifty plunge by 931.96 and 306.05 points respectively.
10.38 a.m.: Sensex plunges by 1,010.22 points to 25,992.00 and Nifty by 310.05 points to 7,960.40.
10.34 a.m: Japanese Finance Minister Taro Aso pledged that Tokyo was ready to adopt strong measures to address wild volatility on financial markets driven by Brexit fears. "We are extremely worried about the risks to the global economy as well as financial and foreign exchange markets," Mr. Aso told reporters.
10.30 a.m.: The Bank of Japan said that it stood ready to work with other major central banks to inject ample liquidity to counter wild volatility in financial markets hammered by Brexit fears. "The Bank of Japan, in close cooperation with relevant domestic and foreign authorities, will continue to carefully monitor how the result would affect global financial markets," it said.
10:24 am: U.S. futures also took a dive. Dow futures fell 3.3 per cent and S&P futures
10:20 am: Sensex plunges nearly 980 points to 26,028.13
10:10 am: The pound suffered one of its biggest one-day falls in history, plummeting more than 10 percent in six hours, from about $1.50 to below $1.35
10:00 am: Tata Motors was the biggest loser among the Sensex pack shedding nearly 10 per cent. Tata Motors has a direct presence in UK by virtue of its ownership of Jaguar Land Rover. Tata Steel was also down 6.46 per cent.
09:55 am: The benchmark indices of China, South Korea and Taiwan were down in the range of 1-4 per cent each.
09:50 am: Among the leading Asian indices, Hong Kong's Hang Seng was down 974 points or 4.67 per cent; Japan's Nikkei lost 1,291 points or 7.95 per cent.
09:45 am: Tthe Sensex was trading at 26,198.50, down a whopping 804 points or 2.98 per cent. The broader Nifty was down 253 points or 3.06 per cent at 8,017.
09:40 am: Rupee crashed by 96 paise to breach the 68-level.
