Markets yo-yo over Brexit, monsoon, but end flat

MUMBAI: Indian stock markets were volatile on Monday reflecting the weak global sentiment due to Brexit on one side and the optimism from an improving monsoon and

MUMBAI: Indian stock markets were volatile on Monday reflecting the weak global sentiment due to Brexit on one side and the optimism from an improving monsoon and economic prospects on the other.

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The 30-share sensex ended almost flat — it rose 5 points to 26,402.96 points — after opening high to subsequently fall by about 90 points. The NSE Nifty ended up 6 points at 8,094.70 points.

“Apart from the immediate impact on any sterling revenues as a result of volatility, Indian businesses will have some time to evaluate alternatives,” said Nikhil Narayanan, partner with legal firm Khaitan & Co.

While the impact of Britain leaving the European Union continued to gnaw at most markets including Asian indices, a likely intervention policy by Japan’s central bank and positive appreciation by Moody’s on India’s recent foreign direct investment norms brought in cheer to the markets.

Key benchmark indices in Japan, China and South Korea also ended in the green. Nikkei225 rose by 2.4%, while the Shanghai Composite jumped 1.45%. Kospi ended flat. However, Mizuho Bank analysts cautioned that markets will be nervous given that the EU and the UK have some mismatch on timing of exit procedures.