Brexit Impact On Domestic Markets

Brexit, Britain's exit from European union influenced the whole world causing a lot of volatility. Brexit took away around Rs 4 Lakh Crore from Indian markets. Maximum loss is afforded by the Tata group as Tata group have significant exposure to the UK and European markets. Top group companies — Tata Motors, Tata Steel, Tata Elxsi, Tata Global Beverage and TCS which together are 83% of total market capitalisation of the Tata Group companies. Market capitalization of the Tata group companies had a sharp drop of Rs 29898 crore. Traders lost around Rs 13243 Crore on a single day.

Sensex deviated from the positive graph straight back to the 1000 points negative graph. However it managed to get back 400 points and closed at 26397 and Nifty dropped 181 points to 8088 points. All the Indian sectors traded highly negative touching the grounds. In Asian markets, Nikkei being the highest loser dropped 1286 points to 14952. All other indexes in the Asian markets traded down to negative. In Bullion market, Gold prices topped 26 months prices yesterday. Prices increased Rs 1487 to Rs 31,401 per ten grams. Silver prices paced up too with increase of Rs 1202 to Rs 42,392 per kg. Crude oil prices dropped Rs 89 to 3266 while Natural Gas prices remained all the more same at Rs 181.

Sensex Slumps Over 300 points- Market Stepping Downwards

Market Graph Moving downwards

In the last session of the week, due to negative signals from Asian Market there is slump in domestic market. The major index of BSE Sensex drop down by 300 points and reached to 2546.2 points and the major index of NSE Nifty drop down by 66 points and reached to 7834 points. Today almost all indexes are trading on red signal. Also there is a high downfall in metals and banking sector too. Bank nifty has dropped with one percent and reached to 16734 points and 1.5 percent of decline in metal index. Out of 50 shares in Nifty only 6 are trading with green signal and other 44 are trading with a heavy downfall. Top five losers of Nifty are Eicher Motors, Dr Reddy, ICICI Bank and Bharti Airtel. With high Business, the top five gainers of Nifty are HCL Tech, TATA Motors, Adani Ports, Idea and BPCL. These all stocks have jumped over 1 to 1.5 percent. Adani Ports, Asian Paints, Tata Motors and ITC are top gainers while HUL, ICICI Bank, Tata Steel, BHEL and Bharti Airtel are losers in the Sensex. According to the experts, due to Mauritius tax treaty, recession was seen in markets and market down assumption was made. However for Indian Markets this tax treaty is useful and are expecting some positive signals for the markets.