Brexit impact: Sensex pares some early losses after initial crash

After crashing over 1,090 points in early trade on free-fall in global equities following the Britain’s decision to leave the EU, the BSE Sensex recovered slightly to trade about 689 points lower in pre-close session on value-buying in key bluechips.

Besides, RBI intervention to infuse liquidity and dollar selling, helped the rupee and Sensex to recover from their day’s low. Among the 30-share Sensex pack, 26 stocks were in negative zone.

The index had tumbled 1,090.89 points and the NSE Nifty fell below the 8,000-mark in early trade as investors indulged in all-round selling, tracking meltdown in global equities after Britain voted to exit the European Union.

The rupee also traded off the day’s low of 68.21 against the dollar on foreign fund outflows but RBI intervention to infuse liquidity and selling of the American currency helped rupee to pull back to Rs 67.78 (intra-day) at the forex market trade.

All the sectoral indices led by realty, metal and capital goods were still trading in red, falling by up to 4.13 per cent.

After resuming lower at 26,367.48 the Sensex continued its slide to crack below the 26,000-mark and hit a low of 25,911.33 before recovering to 26,313.41, still down by 688.81 points or 2.55 per cent.

Shares of companies having large exposure to the UK, led by Tata Motors, Tata Steel, Bharat Forge, Infosys, TCS, Hindalco and Tech Mahindra were trading with heavy losses.

The broad-based NSE Nifty which dipped below the 8,000-mark and touched a low of 7,927.05, was trading at 8,062.80, still down by 207.65 points or 2.51 per cent.

Global markets went into a tizzy with Japan’s Nikkei tumbling 7.92 per cent while Hong Kong’s Hang Seng fell 2.92 per cent. European stocks too opened on a negative note with London Stock Exchange’s FTSE index down 5 per cent after crashing 9 per cent. Futures also showed that Wall Street will likely open with massive losses.