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Brexit Week Ahead – Different Expert Views

Early this week we published a post on the possibilities of Brexit and its forseen consequences. Experts in Indian Market are bit divided on the consequences Brexit can bring to Indian Stock Market. In this post we are collating the different views expressed by Indian Stock Market experts.

The bull man, Porinju Veliyath today tweeted a witty but strong statement that Brexit event has nothing to do with Indian growth story.

“Britain exiting from EU has nothing to do with Indian equities unless they stop wearing clothes, taking medicines & eating food after exit!”

Andrew Holland of Ambit Investment Advisors has given a warning signal that market could fall 10 percent if Brexit does take place. But he is quite positive on Indian market
“Earnings momentum has already starting to show through and a normal monsoon could further set the ball rolling in terms of operational gearing and capacity utilisations. Passage of Goods and Services Tax (GST) Bill in the next session of Parliament and implementation of Bankruptcy Laws, albeit at a later date, will also provide some momentum.”

Ashwani Gujral of has a slightly different view on the matter. He says,
“The sense I have is that Brexit is no black swan. It is not an unexpected event. So, the markets will price in Brexit before Brexit happens whichever way. Like we went into the Budget plunging into 6900, similarly European markets have corrected, the pound has fallen, so all this will get priced in before the event and post the event all of this stress will lead to at least a relief rally globally. So, given that we are moving sideways means that we are not too bothered about Brexit. I think monsoon is a bigger issue for our markets than Brexit and you should used this sideways consolidation to build positions in stronger stocks.”

We believe that any correction due to Brexit would be a golden chance for retailers who missed the post budget rally.  Now lets wait for the big event!!

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