Sensex Ends 604 Points Lower As Britain Votes To Exit EU

Business

oi-Sunil Fernandes

By Sunil Fernandes

Updated: Friday, June 24, 2016, 15:34 [IST]

Benchmark indices ended the day sharply lower, as Britain's Citizens voted to exit the EU In a referendum held on June 23.

The UK Pound fell a huge 9 per cent while European markets fell as much as 10 per cent.

Gold rallied following the news, while crude oil crashed by as much as 5 per cent. Check gold rates in indian cities here

The rupee too fell and was last seen trading at 67.89 to the US dollar. Check currency rates here

There was nervousness and a shock in the financial markets across the globe with currencies from South Africa to Australian Dollar falling in trade.

The Sensex ended the day lower by 604 points, while the Nifty dropped 182 points in trade. At one stage the Sensex had fallen as much as 1000 points, but recovered from those lows, as European markets staged a recovery.

Hardest hit were companies that have a significant presence or export to the UK and the EU region.

Shares in Tata Motors fell as much as 8 per cent. The company has manufacturing plants in the UK and manufactures the Jaguar Land Rover range there.

Tech Mahindra too fell as the company exports services to the UK. Other exports like KPR Mills and Kitex garments also dropped in trade.

Banking stocks were the hardest hit, particularly the private sector banking names. Among the big losers were stocks like ICICI Bank, Axis Bank and State Bank of India.

The midcap 50 index stocks, saw a modest recovery in trade and ended only 1.5 per cet lower.

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