Benchmark indices fell sharply in trade as indications of a referendum in the UK to stay or exit the Eurozone have pointed to a Brexit. In fact, as we write the BBC has callled the referendum in favour of an exit, which means the UK would not be a part of the European Union.
The US Pound slipped as much as 9 per cent against the USdollar on a heightened volatility in currencies. In Asia the Japanese Nikkei fell 3 per cent, the Hang Sang crashed 3 per cent and the Shanghai Composite was down close to 2 per cent.
Among the top losers from the Sensex were stocks that have significant presence or exposrts to the UK. Tata Motors slipped as much as 11 per cent. The company gets a significant portion of its revenues from the UK and the EU region. Concerns on integration of the region sparked a sell-off in the counter.
Tech Mahindra was another stock that fell sharply. The company derives a lot of revenues from the UK through IT services.
Kitex Garmets, Wockhardt and KPR Mills that all have a significant exposure to the UK markets were trading sharply lower by 70-10 per cent
There were no stocks in the Nifty that gained ground in trade today. Meanwhile, the rupee was trading at 67.91 to the US dollar, down 66 paise over Friday's close.