Brexit fallout: Sensex rises five points, pound slumps to 31-year low against US dollar
Earlier in the day, the Sensex had slipped around 99 points while Nifty had fallen by 49.25 points.
The Bombay Stock Exchange Sensex rose 5.25 points to reach 26,402.96 when the markets closed on Monday in range-bound trade, reported PTI. Earlier in the day, the Sensex had slipped around 99 points. Nifty, which had tumbled by 49.25 points, also climbed 6.10 points and touched 8,094.70 by the end of the day.
However, analysts said that the market has not yet recovered from the jolt that Brexit has given global markets. Brokers said that the huge losses in US markets also had a crucial role to play, and that there has been continuous selling by investors and sustained foreign fund outflows.
On the whole, the Asian trade market has not recovered from Brexit yet, reported The Hindu. Japan’s Nikkei was up 2.05% on Monday while Hong Kong’s Hang Seng fell 0.79% early trade on Monday. However, the Shanghai Composite Index rose 0.86%.
Meanwhile, the pound sterling slipped to a fresh 31-year low to $1.3218 against the US dollar. Britain's 10-year government bond yields, called Gilts, slipped below 1% for the first time in history, reported Reuters. According to market analysts, investors sold sterling and sought the safety of government bonds against the backdrop of sliding share prices and an uncertain economic outlook.
On Friday, after the Brexit referendum results showed Britain had voted to leave the European Union, global markets crashed, and the pound suffered its biggest one-day loss in history. The Bank of England had said it was ready to provide £250 billion to Britain's economy, if necessary.