Cameron set to ‘LEAVE,’ Indian govt. assures preparedness
As the British Prime Minister David Cameron has expressed his willingness to step down as the head of the country following ‘Leave’ verdict embracing the victory, experts feel Indian markets will have no much reasons to worry in coming few weeks as Britain holds only around 3 per cent of world’s economy.
Indian markets which witnessed a bloodbath on Friday morning, Sensex dipping by over 1000 points in early hours’ trade, started recovering by the time of posting this report at 2.15pm. At that time, Sensex recovered by around 300 points with certain stocks recuperating from the morning depression fast. Few experts and analysts believe while the central government and RBI have started taking actions putting in the contingency plan in place on the wake softening of the markets here, it is ripe time Narendra Modi led NDA government ensures a smooth passage of GST Bill in Parliament this monsoon. Once the much-awaited and much-hyped Bill becomes a law, this will absorb the softened components spiralled after BREXIT. Implementation of a uniform tax structure across the states of India will boost several sectors leading to rise of optimism among individual investors.
Meanwhile, during the first spell of morning trade, London stock exchange witnessed a dip of over 8 per cent as anxious investors opted for heavy selling. Barclays and RBS fell by around 30 per cent causing further anxiety and trauma among investors holding stocks of these two leading banks. In a statement later in the morning, Bank of England spokesperson said, “But we are well prepared for this. The Treasury and the Bank of England have engaged in extensive contingency planning and the chancellor and I have been in close contact, including through the night and this morning. The Bank will not hesitate to take additional measures as required as those markets adjust and the UK economy moves forward.”
Raghuram Rajan, governor of India’s central bank talking to certain media from Switzerland also talked about the preparedness of Reserve Bank of India helping individual investors in the country to start coming back in the markets and indulge in low quantity of buying and also putting a cap on panic selling. Preparedness of Indian government at this juncture is definitely going to play a crucial role and reforms may the shortest route to undertake a confident journey hereafter. Investors will be all ears to hear from the government talking about steps taken to tackle this crisis.