BREXIT and Fluctuations in the Share Market in India and Abroad

Abstract

United Kingdom's membership of European Union has contributed towards their economic prosperity to a considerable extent. On the other hand the share market is considered to be the barometer of a country's progress. Britain's exit from the European Union has led to a lot of speculation about its future impact on both the Indian and global stock markets. Financial markets before the poll already started to price in the risk of Brexit. It was also opined by many experts that Brexit will transmit shocks through several channels, the intensity of which would depend on policy developments and the time horizon considered. In this regard, the present paper aims at analyzing the impact of Brexit on the stock markets in India and abroad.