IT stocks drop as referendum outcome suggests Brexit from EU

Shares of ten IT companies fell 2.09% to 4.61% at 9:30 Ist on BSE as early voting returns on the Brexit referendum suggested Britain was on the brink of leaving the European Union

Meanwhile, the S&P BSE Sensex was down 781.50 points or 2.87% at 26,227.68.

TCS (down 2.41%), MphasiS (down 4.01%), HCL Technologies (down 4.61%), Tech Mahindra (down 3.85%), Oracle Financial Services Software (down 2.42%), Wipro (down 2.09%), Infosys (down 2.23%), Persistent Systems (down 4.6%), MindTree (down 3.01%) and Hexaware Technologies (down 2.34%) edged lower. The UK is the second biggest IT outsourcing market after the United States for the IT companies.

Carnage came to world markets today, 24 June 3016 as early voting returns on the Brexit referendum suggested Britain was on the brink of leaving the European Union, threatening the existence of the entire bloc and its single currency. Risk assets were scorched as investors fled to the safety of top-rated government debt. The currencies collapsed with British Pound Sterling and Euro witnessing a free fall against the dollar.

Early official results showed the margins were nail-bitingly tight but pointing to a "Leave". Betting firm BetFair estimated the probability of leaving as high as 74 percent. With half of 382 counting areas declared, the Leave camp was put at 51.3% against 48.7% for "Remain",

Meanwhile, in the foreign exchange market, the rupee dropped below 68 mark against the dollar. The partially convertible rupee was hovering at 68.16, compared with its close of 67.25 during the previous trading session. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports.

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