Sensex falls ahead of Brexit referendum

REUTERS - Indian shares fell on Wednesday, heading for their second straight session of falls, a day ahead of the Brexit referendum, while Tata Motors declined on worries that its unit Jaguar Land Rover would be hit if Britain leaves the European Union.

Investors have been on the edge amid uncertainties whether Britons will vote to remain in the 28-member trading bloc on Thursday. An opinion poll on Tuesday showed support for the "IN" camp declined after hopes of a "Bremain" emerged following British MP Jo Cox's death.

Sentiment was also subdued after U.S. Federal Reserve Chair Janet Yellen said on Tuesday the outcome of 'Brexit' would have "significant repercussions" on the U.S. economy and that a rate hike would depend on a rebound in hiring.

 

The Reserve Bank of India said it "will take all necessary steps, including liquidity support, to ensure orderly conditions in financial markets."

"Despite reacting to domestic cues such as changes in foreign direct investment policies as announced on Monday, Indian markets remain uncertain over the UK's referendum and, hence, mirroring global sentiment," said Anand James, chief market analyst at Geojit BNP Praibas Financial Services.

The broader NSE Nifty was 0.44 percent down as of 0835 GMT, while the benchmark BSE Sensex was 0.42 percent lower.

Shares of Tata Motors fell as much as 3.3 percent, heading for their first loss in seven sessions, and making them the biggest drag on both the indexes.

The fall came after Reuters reported on Tuesday that Jaguar Land Rover could see its annual profit cut by 1 billion pounds ($1.47 billion) by the end of the decade if Britain leaves the EU, citing two sources familiar with matter.

Exporters reliant on global demand also fell, with Infosys Ltd and Tata Consultancy Services Ltd dropping as much as 1.5 percent and 0.73 percent, respectively.

(Reporting by Arnab Paul in Bengaluru; Editing by Subhranshu Sahu)