The imminent exit of Britain from European Union has sent shock waves across the world markets.
In India, Sensex — the benchmark index of the Bombay Stock Exchange — opened 940 points down as leads showed the ‘Leave’ camp was ahead in the ‘Brexit’ referendum vote. Nifty tanked 281.50 points.
The rupee slumped over 1 per cent to 68 per dollar today, tracking huge volatility in global financial markets today.
The rupee is expected to trade near its record low of 68.85 hit in August 2013. The rupee closed at 67.25 per dollar on Thursday.
British pound tumbled to a 31-year low as EU vote results showed the ‘leave’ side in lead by over 400,000 votes after 244 of 382 counting centers report results.
A vote for Brexit will unleash volatility not seen in a quarter of a century, analysts say.
If UK quits the 28-nation European Union, its $2.9 trillion economy is likely to slip into recession.
Shares of companies with large businesses in the UK or Europe are likely to come under tremendous pressure today. Tata Motors, whose Jaguar Land Rover unit in UK will suffer profitability hit if Brexit vote goes through.
video: ABP news