Pounded by Brexit, stocks and rupee went into a tailspin with the Sensex taking 1,090-point during the intra-day trade on Friday and rupee crashing by 97 paise but late buying by domestic institutions and talking-up by policymakers helped recoup some losses.
The S&P BSE sensex resumed lower at 26,497.11 and hovered in a range of 27,060.98 and 25,911.33 before ending the week at 26,397.71, showing a loss of 228.20 points or 0.86 per cent.
The 50-share Nifty also dropped by 81.60 points or 1 per cent to close the week at 8,088.60 after moving in a range of 8,285.60 and 7,927.05. Domestic stocks, which had plunged 1,090 points in early trade on Friday, recouped some of the losses on value-buying and reassuring words by policymakers including Finance Minister Arun Jaitley and RBI Governor Raghuram Rajan.
“Brexit has come as a shocker to markets who were expecting Britain to remain in the EU. There was mayhem in global markets as the news trickled in, though some semblance of normalcy came in the final hour of trading on Friday,” Hariprasad M P, Senior Vice-President & Head Treasury & Banknotes Business, Centrum Direct said.
In a deadly blow to the 28-nation bloc, Britain voted to leave the EU, forcing Prime Minister David Cameron to announce resignation in the wake of defeat in the historic referendum, whose result triggered a panic reaction in world markets.