Britain has voted to exit European Union (EU) in a historical referendum, in which 51.9% people voted in favor of Britain’s exit from EU, while 48.1% people opposed the idea.
Prime Minister David Cameroon announced his resignation after the results were declared. He said the country needs a change in leadership following the results of the referendum, and he will quit his post in October.
People who voted in favor of Brexit argued that Britain has failed to take correct political decisions due to its EU membership, and this is resulting in an increase in financial burden on the country. Following Brexit, the country would be able to take correct decisions related to economy, foreign policy and immigration issues. They said Britain will now be free of immigrants and debt of sluggish member countries in EU.
UK’s vote to exit EU played havoc at all major stock markets across the world which fell sharply as the final result of the referendum was declared. Rs 4 lakh crore were knocked off from the investors’ wealth in Indian stock markets within minutes after the markets opened for trading in the morning. The total investor wealth fell below Rs 98 lakh crore level early morning as reports from the UK showed that British people have voted against remaining with the EU. The total investor wealth is measured in terms of cumulative value of all listed stocks including that of promoters.
Mumbai Stock Exchange sensex fell 604.51 point to reach 26,397.71. Nifty at NSE also fell 181 points initially. Other Asian and European markets also fell about 8% on average.
Concerns further rose as experts said Brexit could result in EU slipping into recession and Indian companies would need to revise their strategies to use Britain as the gateway for their European operations.
Indian Finance Minister Arun Jaitley said India is ready to face short-term and medium-term effects of Brexit. He said India’s foreign currency reserves can easily face challenges arising due to Brexit.
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