Do we really have a reason to worry, BREXIT ?

UK exit or stay with EU is bringing in goose bumps to the international markets. On Friday, June 24 Dow Jones Future is down 574 points and FTSE Future is down by 8 per cent. On the other hand, Sensex opened negative down by 781 points.

The Indian Rupee against dollar is trading at 68.13, down by 0.88 per cent, while on the other hand, UK pound is down 10 per cent against the US dollar.

The UK and the US market will open down. On, the other hand Indian markets will witness snow ball effect as the Foreign Institution Investor (FII) will sell and book their profits in the Indian markets.
From a long term perspective, it is just a news reaction for the Indian markets, it will not have a much impact from the long term perspective, some believe.

In the 2016 financial year, India-UK bilateral trade was worth dollar 14.02 billion. India exported goods and services worth dollar 8.83 billion while imports from the UK were at dollar 5.19 billion. In the last five years, the trade has been more or less stable. Britain’s exit from the EU probably won’t have any significant impact on Indian trade.

But on the other hand, Indian major IT, Auto, pharma companies which have operations in UK will have a major impact of BREXIT.