Global stocks surge on the hopes of UK staying in EU

Krishnanand Tripathi
Britain's Prime Minister David Cameron and his wife Samantha leave after casting their votes in the EU referendum at a polling station in London, Thursday, June 23, 2016. Voters in Britain are deciding Thursday whether the country should remain in the European Union.

Britain’s Prime Minister David Cameron and his wife Samantha leave after casting their votes in the EU referendum at a polling station in London, Thursday, June 23, 2016. Voters in Britain are deciding Thursday whether the country should remain in the European Union.

Most of the major world markets were in green as Britons voted in the referendum to decide whether to leave or stay in the European Union. Most of the stock markets in Asia and Europe ended the day in positive and markets in the US were trading in positive as the latest opinion polls, conducted before the Thursdays’ poll, suggested that Britons might vote in favour of staying in the EU.

Britain’s benchmark FTSE hit two months high during the mid day trading and Pound Sterling was trading at the strongest level in the year.

India’s two benchmark indices – BSE Sensex and NSE Nifty closed up by almost one per cent.

Same story was repeated much of the Asian and European markets as Japan’s Nikkei and Hong Kong’s Hang Seng closed in green. The only major exception was China’s Shanghai Composite that ended the day down by almost half a per cent.

In Europe, Germany’s bench mark index DAX was up by over 1.5% and CAC 40 of France was also up by nearly 1.75%.

The latest poll conducted by pollster Populus at midnight Wednesday, put the vote at 55% for remaining in the European Union and 45% for seceding.

This fuelled the hopes that UK might stay in the European union. All three benchmark US indices S&P 500, Dow and Nasdaq were trading up by almost one per cent during the early hours.

India’s benchmark BSE Sensex logged a surprise rally of 236.57 points today to reclaim the 27,000-mark, tracking strong gains in Asia and Europe with investors speculating that Britain will remain with the European Union.

Shares of Tata Motors, having a big exposure to the UK, emerged as the biggest BSE gainer with a rise of 3.28 per cent to Rs 488.

Other companies with exposure to the UK also saw revival of buying after witnessing selling pressure in yesterday’s trade. Bharat Forge, Hindalco and Infosys recorded gains of up to 2.03 per cent.

The Sensex after moving in a tight range initially, tended to look up in step with a firm global trend and recaptured the 27,000-mark to hit a high of 27,060.98. Finally, the gauge ended 236.57 points or 0.88 per cent higher at 27,002.22 – its highest closing since June 8.

The rupee strengthening by 24 paise to 67.24 against the American currency (intra-day) at the forex market, too helped.

(With inputs from agenies).