A range bound movement was witnessed as key benchmark indices traded near the flat line in early afternoon trade. At 12:16 IST, the barometer index, the S&P BSE Sensex, was down 6.77 points or 0.03% at 26,758.88. The Nifty 50 index was down 4.80 points or 0.06% at 8,198.90. In overseas stock markets, most Asian stocks fell as investors remained on the edge ahead the Brexit referendum. Brexit refers to the referendum on 23 June 2016 by British voters to decide whether the country should remain a member of the European Union (EU) or leave it.
The market breadth indicating the overall health of the market was weak. On BSE, 1,436 shares fell and 821 shares rose. A total of 159 shares were unchanged. The BSE Mid-Cap index was currently down 0.10%. The BSE Small-Cap index was currently down 0.30%. The decline in both these indices was higher than the Sensex's decline in percentage terms.
In overseas stock markets, most Asian stocks fell as investors remained on the edge ahead the Brexit referendum. Brexit refers to the referendum on 23 June 2016 by British voters to decide whether the country should remain a member of the European Union or leave it. Japanese stocks edged higher as the yen weakened against the dollar after the latest opinion polls ahead of the Brexit referendum on European Union membership suggested the remain camp is gaining momentum. The Nikkei 225 Average ended 1.07% higher. A weaker local currency benefits exporters, as they can sell their goods at more competitive prices overseas. The Brexit voting will close at 10 p.m. London time. Referendum results from the first counting areas are expected around 12:30 a.m. London time on Friday, 24 June 2016. US stocks finished slightly lower yesterday, 22 June 2016, as opinion polls showed the outcome of the Brexit remained too close to call a day ahead of the vote.
If the UK votes to leave the EU, it could send British pound and euro tumbling, with ripple effects across global asset classes.
Closer home, the Reserve Bank of India (RBI) has assured liquidity support to ensure orderly conditions in financial markets if the Brexit poll outcome causes turbulence in global financial markets. The RBI said a statement issued yesterday, 22 June 2016, that it is maintaining a close vigil on developments, and will take all necessary steps, including liquidity support, to ensure orderly conditions in financial markets.
Most realty shares edged lower. Unitech (down 3.5%), D B Realty (down 3.31%), Housing Development and Infrastructure (HDIL) (down 2.93%), Peninsula Land (down 2.69%), Indiabulls Real Estate (down 2.51%), Parsvnath Developers (down 2.06%), DLF (down 1.96%), Anant Raj (down 1.62%), Sobha (down 1.11%), Phoenix Mills (down 1.1%), Oberoi Realty (down 0.93%), Godrej Properties (down 0.77%) and Omaxe (down 0.48%) edged lower. Sunteck Realty (up 0.19%), Prestige Estates Projects (up 0.27%) and Mahindra Lifespace Developers (up 0.88%), edged higher.
Most IT stocks fell ahead of the Brexit referendum. TCS (down 1.22%), MphasiS (down 1.03%), HCL Technologies (down 0.84%), Tech Mahindra (down 0.72%), Oracle Financial Services Software (down 0.55%), Wipro (down 0.39%) and Infosys (down 0.16%) edged lower. Persistent Systems (up 0.35%), MindTree (up 0.96%) and Hexaware Technologies (up 4.51%) edged higher. The UK is the second biggest IT outsourcing market after the United States.
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