Markets Calm Down After Brexit Storm; IT Stocks Plunge

| } June 27 , 2016 , 20:27 IST
sensex-market92Indian markets showed resilience on Monday after suffering its worst slump in four months last week amid uncertainty over the impact of Brexit. Trading in a tight range throughout the session, the benchmark Nifty managed to end with a modest gain as investors continue to fret about the repercussions of the historic referendum. Financial and currency markets across globe went into a tailspin on Friday after Britain voted to exit the European Union. After a sluggish start, key indices recovered in late afternoon trade following some low-level buying as well as short-covering ahead of option expiry on Thursday. But, bourses failed to consolidate at higher levels and witnessed some profit-taking, though it ended in positive zone with modest gains. Elsewhere in the region, most equities ended higher, shrugging off Friday's global sell-off with the benchmark Nikkei surging 357.19 points, Shanghai 1.44 per cent and Kospi 0.08 per cent, while Hang Seng fell 0.16 per cent. European stocks extended losses today as the fallout from Britain's decision to leave the European Union continues, sending the pound to a 31-year low. The 50-share index opened distinctly weak at 8,039.35 and fluctuated widely between a high of 8,120.65 and a low of 8,039.35 before ending at 8,094.70, showing a modest six points gain or 0.08 per cent over its last close. It had cracked over 181 points or 2.20 per cent in the last session. Among sectoral gainers, Nifty PSU Bank jumped (2.83 per cent), Pharma (2.01 per cent), Realty (1.54 per cent), FMCG (1.01 per cent), Infra (0.75 per cent), Energy (0.53 per cent) and Nifty Bank (0.51 per cent). Small-cap and mid-cap stocks witnessed good buying interest, up 2.62 and 0.91 per cent, respectively. However, technology stocks were especially hard hit with the Nifty IT indices tumbling 1.74 per cent on concerns over the impact of Brexit on the Indian outsourcing companies. Auto also ended marginally lower. Major movers included L&T, ITC, SBI, Sun Pharma, Aurobindo Pharma, Dr Reddy's, Ultratech, ICICI Bank, BPCL, Reliance, Axis Bank, Cipla, Bharti Infratel and Grasim. Key losers were Infosys, TCS, HDFC, ZEE, IndusInd Bank, Asian Paint, Bosch, Maruti, Bharti Airtel and Wipro. A total of 1,221 scrips advanced, 339 declined while 64 were unchanged. Turnover in cash segment dropped to Rs 16,349.78 crore from Rs 24,652.06 crore last Friday. A total of 9,750.46 lakh shares changed hands in 72,37,216 trades. The market capitalisation of NSE stood at Rs 98,30,305 crore.

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