First a nut-shell on Brexit Deal:
The agreement on Brexit deal marks the exit of Britain from the European Union and is subject to final approval from the UK and European parliaments. Further as per the agreement, Northern Ireland will remain within the UK customs but tariffs will become applicable if goods cross mainland Britain to Northern Ireland if they move to Ireland and into the bloc's single market.
So, companies back home which have dealings or market in the UK and Europe will or have been impacted as was seen in the last trading day when the Brexit deal was made public i.e. during the last 30 minutes when the Indian markets were to shut for the day.
1. Tata group stocks including Tata Steel, Tata Motors and TCS: Tata group is both the biggest investor as well as the employer in the UK alone and the uncertainty around the Brexit deal that came fore in 2016 did not bode well for the Indian conglomerate. And after the deal came through on October 17, 2019, the shares of Tata companies rallied.
Tata Motors with its most clientele base for JLR in the UK and Europe, spurted by as much as 10% in the last trading session and today was trading marginally down by 0.25% at Rs. 137.80 on the BSE.
2. TCS: Shares of the company were trading largely muted, with a high of Rs. 2058 reached in intra-day trade on Friday as against its closing price of Rs. 2030.70 in the previous session. Earlier in the week, TCS V Ramakrishnan said while the IT giant has grown strongly in the continent in the last 3-years, the indecision around Brexit was hurting.
3. Tata Steel: India-based steel manufacturing company also leads the European region in steel production. The key customers of the company's UK region are automotive, constructive and packaging. Also, the company caters to almost 50% requirement of the UK's car manufacturing companies' demand for steel. After yesterday's over 2% rally, the stock of Tata Steel in Friday's trade is muted with 0.5% gains and reached a high of Rs. 359.60 on the BSE.
4. Eicher Motors: Luxury bike Royal Enfield, an Eicher Motors' brand has it's most and for its global markets, the company has a technical centre in the UK. The stock after jumped 7% in Thursday's trade is trading lower by almost 1% at Rs. 20317.70 per share.
5. Bajaj Auto: As the company caters to two and three-wheeler market in Europe and also signed a deal with Trimph Motorcycles based in the UK for taking hold of the mid-weight motorcycles, no clarity around Brexit deal would result in a negative impact on its supply chain. And after a 3% surge in Thursday's trade, the stock of Bajaj Auto trades muted with a decline of 0.72% after gaining to reach a level of Rs. 3123.45 on the BSE.