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Markets collapse as Britain exits EU

Sensex crashes 605 points, Rupee at four-month low, Pound sinks to 31-year low25 Jun 2016 | 12:36 AM

MUMBAI: Pounded by Brexit, stocks and rupee went into a tailspin today with the Sensex taking 1,090-point early morning plunge and rupee crashing by 96 paise, but late buying by domestic institutions and talking-up by policymakers helped them recoup some losses.

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Markets collapse as Britain exits EUBrokers react to falling stock prices on screens of computers in Kolkata on Friday. PTI

Mumbai, June 24

Pounded by Brexit, stocks and rupee went into a tailspin today with the Sensex taking 1,090-point early morning plunge and rupee crashing by 96 paise, but late buying by domestic institutions and talking-up by policymakers helped them recoup some losses.

The BSE Sensex still ended the day 605 points lower, its biggest single-day fall in over four months, while the rupee closed 71 paise down at 67.96 against the US dollar, its lowest level in four months.

Consequently, total investor wealth, measured in terms of cumulative market value of all listed stocks, tanked nearly Rs 1.79 lakh crore.

Domestic stocks, which had plunged 1,100 points in early trade, recouped some of the losses on value-buying and reassuring words by policymakers, including Finance Minister Arun Jaitley and RBI Governor Raghuram Rajan.

In what was termed as ‘readjustment across all asset classes’ by Rajan, gold prices went up with the yellow metal again emerging as a ‘safe haven’ investment.

“Brexit has come as a shocker to markets who were expecting Britain to remain in the EU. There was mayhem in global markets as the news trickled in, though some semblance of normalcy came in the final hour of trading,” said Hariprasad MP, senior vice-president and head treasury and banknotes business, Centrum Direct.

In a deadly blow to the 28-nation bloc, Britain today voted to leave the EU, forcing Prime Minister David Cameron to announce resignation in the wake of defeat in the referendum whose result triggered a panic reaction in world markets.

Japan’s Nikkei tumbled 7.92% while Hong Kong’s Hang Seng fell 2.92%. Europe was also in deep red with London-based FTSE index down 9% at one point.

The pound collapsed to a 31-year low against the dollar after crashing 10% while compared to the rupee, British currency fell around Rs 7 to 93.13.

After opening lower at 26,367.48, the BSE Sensex continued to slide, hit by plunging global markets, forcing the index to crack the 26,000-mark and touch a low of 25,911.33.

However, value-buying in key blue chips, helped the index recover part of the lost ground to close the session 604.51 points or 2.24% down at 26,397.71. This was the index’s weakest closing since February 11.

The NSE Nifty, which cracked below the 8,000-level, managed to recover part of the initial losses and settled 181.85 points or 2.20% down at 8,088.60.

Tata Group stocks were among the biggest fallers, plunging up to 8%, as Brexit spooked investors given the conglomerate’s huge exposure to the region.

Tata Group’s blue chips, Tata Motors slumped 7.99%, Tata Steel plunged 6.37% and TCS slipped 2.78% on the BSE. Tata Motors and Tata Steel were the worst performers among the 30-Sensex stocks.

Concerns mounted as commentators said Britain’s exit, commonly referred to as Brexit, would mean that the EU could slip into recession while Indian companies would also need to rework their strategy to use UK as a gateway for their European operations. — PTI


"If there are disruptions in the markets and liquidity is not available from certain quarters, we are fully ready to provide whatever liquidity is needed... Both dollar liquidity as well as rupee liquidity Rs "— Raghuram Rajan, RBI Governor

"The government, RBI and other regulators are well prepared and working closely together to deal with any short-term volatility. Our aim will be to smooth this volatility and minimise its impact on the economy in the short term" — Arun Jaitley, Finance Minister

Gold zooms to 26-month high

Gold zooms to 26-month high

25 Jun 2016 | 12:36 AM

NEW DELHI: Gold prices zoomed to 26-month high of Rs 30,885 per 10 grams today in the biggest single-day gain of Rs 1,215 since August 2013 as Britain voted to exit the European Union leading to bloodbath in global equity and currency markets.

India strong enough to overcome Brexit fallout, says India Inc

25 Jun 2016 | 12:36 AM

NEW DELHI: As stock markets and the rupee were pounded following the Brexit outcome, the government today assured investors that India’s macro-economic fundamentals are strong but warned of turbulence for the global economy in the months ahead.

Industries Dept to take a call on PACL divestment

25 Jun 2016 | 12:36 AM

CHANDIGARH: Having failed to attract any bidder to disinvest the government’s stake in Punjab Alkalies and Chemicals Ltd (PACL) despite repeated attempts, the Directorate of Public Enterprises & Disinvestment (Punjab) has written a letter to the Industries Department to suggest the future course of action.

Haryana traders oppose new stock limit norms for pulses

25 Jun 2016 | 12:36 AM

CHANDIGARH: The Haryana traders have opposed the state government’s decision to reduce the stock limit of the pulses for traders, dealers and millers in view of the rising prices of the pulses.

World stocks tumble as Britain votes for EU exit

24 Jun 2016 | 9:39 PM

NEW YORK: Global capital markets reeled on Friday after Britain voted to leave the European Union, with $2 trillion in value wiped from equity bourses worldwide, while money poured into safe-haven gold and government bonds. Sterling suffered a record plunge to a 31-year low.

US, Europe stocks plunge after shock Brexit vote

24 Jun 2016 | 9:17 PM

LONDON/ NEW YORK: \US stocks and Europe stocks plunged, with the Dow Jones average falling more than 500 points at the open and European shares, led by the region's banks, falling as much as 9 per cent as shockwaves spread across global markets after they felt the full force of Britain's vote to leave the European Union on Friday.

Sahara auction: SEBI adds 16 land parcels, bid price Rs 650 cr

Sahara auction: SEBI adds 16 land parcels, bid price Rs 650 cr

24 Jun 2016 | 3:34 PM

NEW DELHI: Markets regulator SEBI on Friday added 16 land parcels of Sahara group with a reserve price of over Rs 650 crore to the list of properties to be auctioned next month for recovery of funds.

Will provide liquidity, correct disorderly market behaviour: RajanBrexit

Will provide liquidity, correct disorderly market behaviour: Rajan

24 Jun 2016 | 3:23 PM

NEW DELHI: Reserve Bank Governor Raghuram Rajan on Friday promised to provide liquidity and correct any disorderly market behaviour following UK’s vote to walk out of the European Union, saying that after initial investor worries over Brexit, funds should return to India.

It is business as usual: JLR on Brexit

24 Jun 2016 | 2:49 PM

LONDON: 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.

Brexit

Near-term uncertainty for Indian IT cos: Nasscom

24 Jun 2016 | 2:47 PM

NEW DELHI: 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 today said.

Experts see huge volatility on more ‘exit’ concerns

Experts see huge volatility on more ‘exit’ concerns

24 Jun 2016 | 3:58 PM

NEW DELHI: With the Brexit causing a big havoc in financial markets globally, the volatility index of Indian stock markets zoomed over 10 per cent and experts warned of a huge volatility ahead on concerns of ‘copycat’ exit referendums in other European nations.

Adani’s Australia coal mine project faces another legal hurdle

Adani’s Australia coal mine project faces another legal hurdle

24 Jun 2016 | 11:40 AM

MELBOURNE: The 21.5-billion dollar Australian rail and mine project of Indian energy giant Adani Mining on Friday faced another legal hurdle after a community group asked the Supreme Court to scrutinise Queensland state government’s decision to approve the firm’s Abbot Point Terminal expansion.

Brexit: Sensex plunges 1,058 points, Rs 4-lakh crore wiped out

Brexit: Sensex plunges 1,058 points, Rs 4-lakh crore wiped out

24 Jun 2016 | 3:26 PM

MUMBAI: Market benchmark Sensex took a big 1,058-point plunge this morning as UK’s vote to exit European Union sent financial markets into a tailspin, eroding nearly Rs 4-lakh crore from the investors’ wealth held in stocks. Rupee was also down almost 96 paise, though the government and RBI sought to play a brave face, saying the fall in Indian currency was relatively moderate in comparison to many other currencies globally.

2 lakh Rs 251 phones ready, ‘cheapest’ LED TV next

24 Jun 2016 | 1:29 AM

Noida: The world’s cheapest smartphone at Rs 251 is here, finally. Its makers, Noida-based startup Ringing Bells Pvt Ltd, say they “are ready with two lakh handsets and will start delivery from June 30”.

Merger with Aircel soon, says RCom

24 Jun 2016 | 12:20 AM

New Delhi: The merger of Reliance Communications and Aircel is likely to be announced within 15 days, after months of extended negotiations, and the new entity is expected to have Rs 25,000-crore business from the first day of its operation.

Jaitley meets top bankers in China, woos investors

Jaitley meets top bankers in China, woos investors

24 Jun 2016 | 12:20 AM

Beijing: Finance Minister Arun Jaitley today began his five-day China visit by meeting top Chinese bankers and wealth fund managers pitching for more investments in India’s infrastructure sector.

Sony may set up plant in North

24 Jun 2016 | 12:20 AM

Dharamsala: Electronics major Sony may start production in North India. Sony India managing director Kenichiro Hibi said this while talking to The Tribune here today.

Regional PF office serves over 600 notices on defaulting firms

24 Jun 2016 | 12:20 AM

Chandigarh: To recover the pending dues of provident fund from the defaulters, the office of the Regional Provident Fund Commissioner has served over 600 notices in the current fiscal to various firms based in Patiala, Chandigarh, Fatehgarh Sahib, Ropar and Mohali.

Briefly

Toyota opens mega diesel engine plant

24 Jun 2016 | 12:20 AM

Bengaluru: Toyota Corporation inaugurated its Rs 1,100-crore diesel engine manufacturing plant here on Thursday. The plant will manufacture powerful and high performance Global Diesel (GD) engine, the company said.

Govt mulls converting unused airports into SEZs

23 Jun 2016 | 2:12 PM

NEW DELHI: The government is looking at converting some unused airports into special economic zones where aircraft leasing companies can park their planes and showcase them to potential customers, a senior official said today.

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