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  • Category: Miscellaneous

    BREXIT impact on Indian Stock Markets - Share your Opinion

    On Friday, Indian Markets opened in dark RED, Sensex loosed almost 1000 points during opening and later slowly recovered to 550 points and closed with a net loss of 600 points of loss.

    With the BREXIT, Global Markets also witnessed heavy selling on friday.

    What do you think, How BREXIT will impact Indian Markets next week. Will it be temporary or will have long term effect on India Growth story ? Share your opinions here.
  • #568798
    I personally feel that the impact of 'Brexit' would be terrible in European share markets. I feel that the European markets won't be able to come out of the adverse impact of 'Brexit' for at least six months.

    So far as Indian share market is concerned, I feel that the impact would be extremely short-term. Even on yesterday we have noticed that at one stage, the downfall of Sensex and Nifty as more than 3.8%, but at the end of the day, these two major indices recovered quite a lot an closed at a loss of about 2.25%.

    Many Indian experts also see buying opportunity in this turmoil. Indian economy is strong enough to contain the negative impact of 'Brexit'.

    “Whenever I feel the need to exercise, I lie down until it goes away.” - Paul Terry

  • #568803
    @Partha Kansabanik ,
    Agree with your words. For investors in Indian Markets, Its a very good opportunity to pick high quality stocks in the panic situation.

    K K

  • #568811
    @ Kranthi Kumar, as I am not an economist, but searching on Google, I found a lot of information. And my analysis says that there will be very less impact on Indian stock market and Indian economy.
    There will be very less impact because Britain exit from Euro zone does not mean from today onwards the pound will start go down and all business deal with India will get hampered.
    This is a long run process to get exit, and it might bring higher business opportunity with UK in future for India.
    Also it will reduces our expenses ( students who wish to study at UK, or tourist who visit UK). And UK investor will show more interest to invest in India now.
    And Our stock market does not run only from UK Investor , so although we witness around 2.5% down fall in Index, that is not a big issue, that was just a sentiment fall.Because although there was crash in whole world our all 50 NIFTY stock did not go in red, it clearly indicates that we have our own strong economy and news to keep our market in control.

  • #568826
    I am going to throw a googly. We should not take sudden fall or rise up in the sensex and nifty etc. seriously. It is mostly sentimental. When there is a cat fight in the Parliament, then the sensex falls. I remember one of major fall in the sensex occurred when the Satyam fraud came to light. Almost during all budget seasons, sensex fluctuates, but it bounces back to its normal in due course. Even during the unfortunate events of death of a national leader of high stature, sensex plummets. It crossed the historical mark of 30,000 after repo rate cut announcement by the Reserve Bank of India and fell by over 1,624.51 points on a single day on 24.08.2015.
    As a layman I believe that it is sheer speculation which is the hall mark of stock trading which causes fluctuations in the index. There are many individuals who are full time stock traders and the ups and downs in the sensex is their cup of tea.
    Nothing much will happen. The world will go on as usual.

    Let us encourage each other in sharing knowledge.

  • #568827
    To all our members, who are into the stock market, I would suggest to stay away from the market for sometime. We don't know who will be the next in the pipeline to leave European Union. Whenever a country leaves EU, we may see similar kind of market fluctuations. In such situations neither technical analysis nor fundamental analysis of stocks can work. So, it is better to observe the stock market from outside until everything settles down.

  • #568845
    Mr. Nalla, why don't you use the opportunity of these wild fluctuations to buy quality scripts at lower prices?
    “Whenever I feel the need to exercise, I lie down until it goes away.” - Paul Terry

  • #568859
    Partha sir, those who are investing in systematic way, they can gain from the market fluctuations by investing regularly. But I am doing short term trading using some technical indicators and we don't know whether the market has bottomed out or not. We can't guess now whether the market will go up or down in the next coming days. We may think that the quality stocks are available at cheaper price by looking the the previous highs. But those stocks may not reach the high price again after the Brexit. These are my assumptions. But in stock markets any thing can happen.

  • #568864
    I am not in short-term/intra-day trading. I am keeping close watch on my short-listed Sensex and/or Nifty stocks. If the market goes down further, I will invest in these shortlisted stocks and in the Bluechip fund and Balanced fund where I regularly invest through SIP route.
    “Whenever I feel the need to exercise, I lie down until it goes away.” - Paul Terry

  • #568930
    The immediate aftermath of BREXIT has been tumbling of currencies and stock market around the world. But in the long run, it seems logical that India is poised to gain. First of all, the prices of commodities are going to come down, bringing down India's import bill. India has enough Forex reserve to weather the storm for the time being. BREXIT would bring about a global growth slowdown, though unwanted, yet it will only strengthen India's position as leading growth engine of the world. India stands to gain with more investment and FDI coming in due to weak global cues and strong domestic policies favoring investment.

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