Nifty on the day of BREXIT!!

Black Friday!!! A Friday when Britain voting to stand out from treaties and policies of European Union. Market all over the world was jittery as huge gap down opening was expected and our Indian markets were no stand out. Nifty opening with a gap down of 240 points (prv close 8270; opening 8029 on 24th June 2016) some were expecting for a circuit in the markets and it was a 3-4% gap down; anticipating for more selling hence circuit.

A very long prolepsis day being factored for market on black friday as day went by. Nifty touching lower low levels until it started to gain from lowest levels of 7927 and participatants  in market regaining sense that Indian companies won’t be affected by Britain exit expect for few UK based companies like Tata motors, Bharat forge, Marksman pharma, Hinduja group, Motherson Sumi to name few samples from a small population size. Majorly currency fluctuation will have impact on these companies but fundamentally will remain intact and thanks to currency hedging these corporate will have risk measure already in place. But impact can’t be ruled out. Nifty recovering from lowest point and domestic theme based companies regaining a smart move from lowest levels.

Companies                                                     LOW         HIGH      CLOSE
1. Snowman Logistic                                       64.6          75.95        75.05
2. ABM knowledgware                                    98            110            108
3. Vakrangee                                                     180          187           186.5
4. Gati logistic                                                  145          167.8        166.7
5. Sharda PetroChem                                       352.1        379.9       378.05
6. WonderLa Holidays                                     373.6        396          386
7. Somany Ceramics                                        515.55      565          561.9
8. Bajaj Electricals                                           205.95      225          223
9. Jamna Auto Industries                                 158           169.55     169
10. Eros Media                                                188           199          195.8
11. Kanpur Plastic                                           144           153.45     153
12. WABCO India                                           5301         5712        5692
13. Coal India                                                  305.55      314          311.3

Question yourself anything changing for domestic companies, structurally anything changed for India or companies catering to India. If answer is NO you have the oppertunity to add. There are noises in market all the times as financial system in the world are lot more interrelated and no one is left secluded from jittery events occurring in the globalized system. But from these events we should not be afraid but find opportunities to buy as these global events will impact but we need to find intensity and impact on Indian economy and domestic companies. This a opportunity to jump in find value and buy and not be afraid. Companies operating in UK or even Europe can be ruled for short term till political conditions stabilize in the region. Tech Mahindra management said impact will be there but not a game changing event as control measures have been put in place to counter the currency fluctuations.   

Find companies which are catering domestically and these are blessing in disguise to be used as events for buying more of these companies.