Market likely to open lower tracking SGX Nifty

The Sensex dented 1,090-points during the intra-day trade on Friday on Britain's vote to exit the EU, which also cascaded into a sharp drop in the rupee's value and dried up foreign fund inflows; but late buying by domestic institutions and talking-up by policymakers helped recoup some losses. The Sensex plunged by 604.51 points or 2.24% at 26,367 points, whereas the Nifty lost 193.90 points or 2.34% at 8,088.60 points. In the broader market, the BSE Mid-Cap index slipped 45.65 points or 0.4% to settle at 11,313.41 and the BSE Small-Cap index declined 156.53 points or 1.37% to settle at 11,278.63. On a weekly basis, the Nifty dropped by 81.60 points or 1% and the Sensex showed a loss of 228.20 points or 0.86%. The Indian rupee weakened by 71 paise to 67.96-97 against a US dollar on Friday; whereas on a weekly basis, the currency fell by 88 paise to 67.96-97 against a US dollar.

U.S. stocks plunged Friday, after a major shock from the U.K.’s surprise vote to leave the European Union—a historic rejection of Europe’s political order. The Dow Jones Industrial Average dropped 610.32 points, or 3.4%, to 17400.75, while the S&P 500 index fell 75.91 points, or 3.6%, to 2037.41, dragged lower by bank stocks. Meanwhile, the Nasdaq Composite Index plummeted 202.06 points, or 4.1%, to finish at 4,707.98, for its worst one-day percentage drop since August 2011. For the week, all three major indices suffered big losses, with the Dow, the S&P 500 and the Nasdaq dropping 1.6%, 1.6% and 1.9% respectively.

European stock-market indexes were being punished in the aftermath of the vote, with the Stoxx Europe 600 skidding 7% to 321.98; its steepest drop since 2008. The French CAC closed around 8% lower, Germany's DAX index closed around 6.8% down. Meanwhile, Italy's FTSE MIB and Spain's IBEX both closed more than 12% lower. 

Oil prices dropped around 5% on Friday after the U.K.’s vote to leave the European Union in a nationwide referendum triggered a sell-off across markets. WTI oil prices settled down USD 2.47, or 4.9%, at USD 47.64 a barrel and Brent, the global benchmark settled down USD 2.50, or 4.9%, at USD 48.41 a barrel.

Markets in Asia are mixed in early trade on Monday as traders continue to digest shock from the U.K.’s surprise vote to leave the European Union. Japan's Nikkei 225 index has advanced 1.46% lower; while across the Korean Strait, the Kospi is down 0.47%. Australia’s S&P/ASX 200 and New Zealand’s S&P/NZX 50 Indices are up by 0.07% and 0.25% respectively. Chinese markets have recovered from initial losses and the Shanghai composite has gained 0.72%.

On the domestic front, A SGX Nifty 50 index future for June series is trading down by 59.5 points at 8,019. Indian markets are likely to open lower tracking SGX Nifty.