Brexit: Tata Motors, Bharat Forge among stocks taking a severe knock on 'Black Friday'

Britain divorces from the European Union in a historic referendum, thus resulting stocks and currencies taking a huge knock on a 'Black Friday'.

Stocks of domestic companies in the UK with exposure to EU have taken a steep plunge as the Britain heads for a Brexit with 51.7 per cent votes to leave the EU.

Shares of Tata Motors settled the day 8 per cent to Rs 449, after hitting an intraday low of Rs 425 while Tata Steel closed 6.37 per cent and Bharat Forge finished 0.35 per cent to Rs 750.10 on the BSE.

Tata Motors - owner of Jaguar Land Rover, Britain's biggest car maker - forecasts a cut of profits of nearly 1 billion pounds because of the Brexit. It will not be able to enjoy the benefits of easy EU relationships anymore.

Bharat Forge generates 30 per cent of its consolidated revenue from its businesses in the UK which is soon to take a hit.

"It is not worth entering into Britain-related stocks right now and rather wait for the tangible business impact to reflect on what is ahead. The brexit fear has percolated among all stocks, and the market is sitting on the fence. I would advise to only avoid Britain-related stocks and buy other ones with strong fundamentals," said Umesh Mehta, Head of Research - SAMCO Securities told Business Today Online

With 99 per cent of the votes counted in, 'Leave' camp heads with 51.8 per cent as opposed to the 'Remain' camp with 48.2 per cent.

"If I was a trader, I would tend to stay away from the market until we get some clarity,"said Jonathan Barratt, CIO at Ayers Alliance

IT companies have also turned red with the shock of a Brexit.

Infosys shares ended 1.41 per cent, TCS by 2.78 per cent and Tech Mahindra 4.74 per cent.

Skilled labour mobility across EU and UK will be impacted as Indian IT companies may now need to establish separate headquarters/ operations for EU, say Software industry body Nasscom. This can lead to some disinvestment from the UK.

Pharama companies also felt the heat with Wockhardt falling 6.4 per cent to Rs 825 and Cipla 3.3 per cent to Rs 460 intraday. However, the stocks settled the day flat.

The Pound against the Dollar has already hit a 30-year all time low as markets around the world are calling it a black Friday.