Brexit - Britain votes to leave EU - CapitalVia Global Research

Mr. Rohit Gadia, CEO, CapitalVia Global Research on 'EU Referendum' vote, Brexit wins as Britain votes to leave European Union.

UK is the one of the largest contributors of the income of EU. Which is spent on administration, providing various grant. A British exit will impact EU revenue. Followed by Britain now more nations may want to exit from the union. Along with pound rupee is expected to fall against dollar. We don't see any long term negative effect in Indian market. India being one of the most open economy in the world uncertainty in EU there is chance that investment can routed to India now. However Britain being the gateway of India to EU, ease of doing business with EU will hamper.

Rupee will be impacted indirectly as in case of Brexit Pound and Euro will be volatile and is likely to depreciate against the dollar. Demand for yen and dollar as a relatively safe currencies will increase. A stronger dollar will put pressure on rupee and we may see rupee to depreciate further till 67.70-67.90.

Source : Equity Bulls

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