Effects of Brexit on Indian Stock Market

Abstract

Britain exit from the EU has shown shock through the global economy to India.
After the announcement of historic referendum results, stock market points fell to its
lowest. This present study aims to measure the extent of influence of BREXIT on Indian
stock market. Furthermore, this study measures the long-term impact of BREXIT on
shareholders wealth. In order to measure the impact of BREXIT on Indian stock market,
this study considers ten Sensex stock price data. Event study methodology has been
implemented to measure the shareholders wealth. This study finds that BREXIT has
negatively influenced the share prices of companies listed in BSE Sensex. The shareholders
have lost their money immediately after the announcement of results. This study also
reveals that there is no impact of BREXIT on the shareholders wealth in the long run.