Sensex recovers 400 points from day's low; Nifty above 8,000

Markets have staged recovery in late trades with Nifty reclaiming the crucial 8,000 mark amid short covering. At 14:10 pm, the S&P BSE Sensex slumped 802 points at 26,199 and the Nifty50 plunged 253 points at  8,018

Fallout of the Brexit vote had sparked a massive sell-off across the bourses with Sensex plunging over 1000 points.

At 14:10 pm, the S&P BSE Sensex slumped 642 points at 26,360 and the Nifty50 plunged 200 points at  8,070.

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(updated at 13:10 pm) 

As a fallout of the Brexit referendum, Indian equities have taken a hit with Sensex falling nearly 1000 points mirroring heavy volatility in the world stock markets.

At 13:10 pm, the S&P BSE Sensex slumped 802 points at 26,199 and the Nifty50 plunged 253 points at  8,018.

Playing havoc, UK's vote to exit European Union knocked off nearly Rs 4 lakh crore from investors' wealth in Indian stock markets within minutes they opened for trading this morning.

Auto, metal, realty, PSU & Private Bank indices have hit the worst by falling more than 5% each on the National Stock Exchange (NSE) as global markets roiled after Britain voted to leave the European Union.

Tata Motors and Motherson Sumi Systems from auto, Vedanta, Tata Steel and Hindalco Industries from metal, Indiabulls Real Estate, Unitech, Housing Development & Infrastructure (HDIL) from real estate and IDBI Bank from the banking have dipped over 8% each.

Nifty Pharma, Media, Information Technology (IT), Fast Moving Consumer Goods (FMCG) indices however outperformed the market by falling between 2%-3%, as compared to 3.8% decline in the Nifty 50 index.

Idea Cellular, Reliance Communications (RCom), BEML, Bharti Infratel, IRB Infrastructure and MRF are 16 stocks from the Nifty 500 index hit their respective 52-week lows on the NSE in intra-day trade on Friday.

In the global market, European stocks faced the heat following after Britain voted to leave the European Union in a landmark referendum. 

Germany's DAX index cracked 8%, London's FTSE 100 fell 6% and the French CAC dropped 10%.

Asian equities also fell sharply with Japan’s Nikkei, Hong Kong’s Hang Seng, China’s Shanghai Composite and Singapore’s Straits Times down between 1.3%-9%.

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(updated at 11:40 am)
 

Indian stocks plunged on Friday tracking a global sell-off in equities after Britain in a historic referendum voted to exit the European Union.

At 11:40am, the S&P BSE Sensex slumped 998 points at 26,004 and the Nifty50 plunged 315 points at 7,956. In the broader markets, the BSE Midcap and Smallcap indices were down over 3% each. Market breadth weakened further with 1956 losers and 197 gainers on the BSE.

"With UK voters deciding to leave the EU, the market turmoil is evident. But it’s time to see beyond Brexit as this vote helps voices of anti-EU parties across the European region.  The larger worry should now be about a contagion as we have already hearing rhetoric from certain sections in Netherlands and France about leaving the EU. Scotland may also call for another referendum to decide its fate in the UK. In the light of this, from a medium term perspective, the best strategy is to hold on to Gold and Silver and remain neutral to negative on base metals and crude oil. In currencies, Central banks will try hard to intervene but the scenario favors longs on Dollar and the Yen,"  Navneet Damani, Associate Vice President, Commodity Research, Motilal Oswal Commodities.

The Indian rupee was trading sharply lower by 81 paise to Rs 68.07 after the US dollar gained momentum against global currencies following the exit of Britain from the EU. The British pound also took a battering with the currency plunging to a historical low down nearly 10%.

Oil prices also witnessed selling pressure with both the benchmarks Nymex and Brent down 4%-5% each.

However, gold rallied further as investors sought to stay away from riskier assets and park investments in gold. Gold prices in the domestic market were trading above Rs 31,500 per 10gms.

STOCKS

Shares of Indian companies having operations and exports to the European Union have plunged on selling pressure after Britain which voted in a historic referendum to exit the European Union would hurt revenues and profitability.

Stocks in export-led sectors such as pharma and information technology along with auto component manufacturers were among the most impacted.

Tata Motors plunged over 10% after its overseas arm Jaguar Land Rover, Britain’s biggest car maker, which generates more than 90% of profits for Tata Motors, could risk a Pound 1 billion drop in profits by end of this decade, incase of Brexit, as per an internal assessment prepared by JLR.

Tata Steel which has large operations in the UK and earns 58% of its total revenues from Europe dropped over 5%.

IT majors Infosys, TCS, Wipro and HCL Technologies which earn 23%-27% of their revenues from exports to Europe were down 2%-4% each. Tech Mahindra's income from exports to the UK comprises nearly 30% of its total revenue. The stock was down over 3%.

In the pharma pack, IPCA which has substantial exports to the European region was down over 2% while Dr Reddy's Labs which earns 26% of its total revenue from Europe was down over 1%. Among others Glenmark Pharmaceuticals was down over 2%.

Auto component manufacturers which have substantial exports to Europe also witnessed selling pressure. Motherson Sumi which earns nearly 70% of its revenues from exports to the Europe slumped nearly 9%.

Bharat Forge which had streamed lined operations of its subsidiary in Germany in October last year was down over 4%.

Suzlon which has key R&D centres in Denmark, Germany and Netherlands and earns 60% of its total revenue from Europe dropped nearly 5%.

Among others, commodity stocks witnessed selling pressure tracking weakness in global commodities.

Tata Steel, Vedanta, Hindalco Industries, Jindal Steel & Power, SAIL, Hindustan Copper, Hindustan Zinc, JSW Steel, NMDC and National Aluminium Company down 1%-8% each.

However, select gold-related stocks were trading higher tracking rally in global gold prices. Titan was up over 1% while PC Jeweller was up nearly 2%.