Panic button was pushed as crisis emerged after results showed British voters have chosen to leave the European Union in a stunning decision with
The pound plunged more than 11% against the dollar to below $1.33, its lowest level since 1985.
In the final U.K. referendum results, 51.9% of votes were for leaving. Many investors had been betting on Brits choosing to stay.
Britain’s decision to opt out of the European Union (Brexit) rattled Indian financial markets on Friday, shaving some over 1,000 points, or 4 per cent, off a key equities index, while pulling the rupee below the $68 mark.
Both Finance Minister Arun Jaitley and Reserve Bank of India Governor Raghuram Rajan sought to calm the markets and assured there was no cause for panic as India’s economic fundamentals remained strong and along with other macro indicators.
The sensitive index (Sensex) of the BSE, which had closed on Thursday at 27,002.22 points, opened the next morning at 26,367.48 points. At noon, it had drifted sharply and was ruling at 26,002.50 points, down 999.72 points, or 3.70 per cent. At one point, it had lost nearly 1,050 points.
Chris Towner, chief economist at HiFX, said: “We still have a lot of votes to come, however the market cannot ignore the momentum and the reality of where
the UK is heading.”
After wild swings, Japan’s Nikkei closed down 7.9%. The Hang Seng in Hong Kong dropped 4.3%.
Shares in London are set for a brutal day as stock futures are trading around 8% down. U.S. stock futures are also sharply lower, with the Dow
projected to tumble more than 650 points at the open.gration if it leaves the EU, which insists on free movement of people