Global equity and currency markets crashed badly on Friday as Britain voted for leaving the European Union. The Sensex stopped at 1072.21 points and Nifty 335.70 points by the afternoon. Almost all the major stocks are trading in the red.
The meltdown in global equities after referendum result indicated Britain would leave the European Union, triggered all-round selling, dragging down the key indices from their key levels. Gold rallied the most since the 2008 global financial crisis and oil and copper toppled on Friday.
Our aim will be to smoothen the volatility and minimise Brexit impact on the economy in the short-term, says Union Finance Minister Arun Jaitley. Finance Secretary Ashok Lavasa said the government and RBI are ready with measures to curb volatility, Banking Secretary Anjuly Duggal stated that Brexit will not impact India in medium or long term.
Here are the 10 impacts of EU exit
1. Gold zooms Rs 1,205 to hit 22-month high of Rs. 30,875 per ten gram in New Delhi
2. Shares of companies with exposure to the UK witnessed massive selling pressure, plunging up to 13 per cent
3. In Indian market, shares of Tata Motors slumped 12.9 per cent and Tata Steel tanked 10.89 per cent on BSE
4. Tokyo's benchmark stock index dropped almost eight per cent. The Nikkei 225 plunged 7.92 per cent, or 1,286.33 points, to 14,952.02 in its biggest one-day plunge since Japan's 2011 quake-tsunami disaster
5. German government bond prices rose sharply as money poured in from investors seeking safety
6. Rupee fell lesser than many other currencies but took a sharp plunge of 96 paise against the US dollar
7. Hong Kong stocks plunged more than five per cent, sparking a collapse across Asian equity and currency markets
8. The Russian rouble fell against the dollar as did Russian stocks
9. Japanese Finance Minister Taro Aso pledged that Tokyo was ready to adopt strong measures to address wild volatility on financial markets driven by Brexit
10. Bank of England 'stands ready to provide' £250bn
Seeking to allay concerns over Brexit impact on India, the government today said that the economy has enough power to deal with the situation, even as stocks and the rupee took a massive plunge stated Economic Affairs Secretary Shaktikanta Das.
As far the as the stock markets are concerned it is initial spontaneous kind of sudden reaction because something which is happening goes beyond their expectation. This is an instant reaction that they have shown, he added.
Finance Ministry and RBI have been working on this and we have discussed all possible eventualities, outcomes of the Brexit over the last several weeks. We are prepared to deal with the situation that is emerging today, said Das after the Sensex issue arise.