Effects of Brexit on Indian Stock Market
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Assistant Professor, Saveetha School of Management, Saveetha Institute of Medical and Technical Sciences, Chennai
Publication date: 2019-03-16
Eurasian J Anal Chem 2018;13(Engineering and Science SP):emEJAC181219
Britain exit from the EU has shown shock through the global economy to India. After the announcement of historic referendum results, stock market points fell to its lowest. This present study aims to measure the extent of influence of BREXIT on Indian stock market. Furthermore, this study measures the long-term impact of BREXIT on shareholders wealth. In order to measure the impact of BREXIT on Indian stock market, this study considers ten Sensex stock price data. Event study methodology has been implemented to measure the shareholders wealth. This study finds that BREXIT has negatively influenced the share prices of companies listed in BSE Sensex. The shareholders have lost their money immediately after the announcement of results. This study also reveals that there is no impact of BREXIT on the shareholders wealth in the long run.