Brexit anxiety prevails over Asian markets, remain bearish

It's an all-important day for the UK-and India is keenly watching.

A lot of Indian business have set-up their headquarters in United Kingdom for the European business, mainly IT companies. An exit-or, the so-called "Brexit"-will have repercussions across the world". But Leathley, whose firm has set up a Brexit task force, said there were still few clear answers. That's because foreign investors would try to hedge their losses by sell-offs in emerging markets, including India.

"Some analysts say that oil prices will fall following Brexit".

"For India, it would be more of a reaction to global news, which does not affect it directly to a large extent, except possibly some of the corporates which have large exposure to UK". "It's not just my wife and me, but my son, who now handles the family business that I had set up after moving to Britain from Punjab, and even my 18-year-old granddaughter had voted for remaining in EU", Loomba told ET from London. But a vote to Remain, it added, would see the market get over the referendum uncertainty by the last quarter of 2016. "So politics will be at the forefront of markets and with that huge volatility".

World financial markets plunged as complete results showed a near 52-48 percent split for leaving. "We have to ensure that we allow markets to adjust". "India will not be affected due to Brexit if we look at a mid- to long-term perspective", he said.

Economic Affairs Secretary Shaktikanta Das asserted that India has the firepower to withstand impact of Britain's exit from the European Union and did not expect foreign trade to suffer.

On the other end of the spectrum were high-profile Indians such as UK's Minister of State for Employment Priti Patel and Conservative Party MP Rishi Sunak, who both supported Brexit.

Interestingly, India has a larger trade surplus with Britain than with the rest of the EU. The trade balance thus was a positive $ 3.64 billion.

"With currency depreciation, the domestic manufacturer in European Union and Britain may get some competitiveness as imports becoming costlier having its effect on India's and other countries exports".

Meanwhile Peter Wetherell, a London estate agent specialising in luxury homes, said in a separate statement sent to BI that a Leave vote would "generate shock and turmoil" in London and result in a Brexit bubble as rich overseas buyers would take advantage of the plummeting Pound by making short-term, high-end investments.

Today tariffs are already quite low and trade agreements are much more about harmonising policies, such as food safety regulations, so that businesses can easily trade across borders.

So what exactly happens to India post Brexit? .

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