Bloodbath in the Indian markets as Brexit causes panic

Initial data on Brexit vs Remain polls suggested results in favour of Brexit, which impacted currencies all over the globe this morning, including India.

Rupee stumbled 63 paise against the US dollar to 67.88, while it had closed 23 paise higher at 67.25.

Reportedly, the finance ministry has asked the RBI to keep an eye on the rupee volatility, and the central bank has assured that if need arises, it will inject liquidity.

As per the poll results, 54.5% vote count was in the 'Leave' camp, with 51.4% support, leaving the 'Remain' camp behind with 48.6% votes.

After these reports, the British pound fell 8% to its lowest level against the greenback since 1985, while the euro fell 1.5% to 1.12 per dollar. Yen, on the other hand, jumped to its highest level in three years on safe haven demand.

"The domestic currency market will have a deeper impact if Britain breaks from the Union as US dollar will gain strength in such a case. The exchange rate has moved from 52/$ level to 68/$ in the last three years and I do not think fundamentals have changed that much," Rajat Sharma, CEO, Sana Securities, told ET.

Sugandha Sachdeva, AVP & In charge- Metals, Energy & Currency Research at Religare Commodities said that she expected the rupee to move in a band of 66.50-67.70. "On the downside, in case 67.70 is pierced through, we may even see it hitting record lows," she added.

The Nifty50 slipped below its crucial support level of 8000 because of losses in realty, power, metal, consumer durable, and banking stocks.

Things to know about today's market, as per ET reports:

1) Brexit might cause up to 5% correction

2) Bremain might cause risk-on rally

3)Strong resistance for Nifty seen at 8,310

4)Initial results showed a close contest between the two

5) Asian markets stay nervous

6) S&P futures slip on early results