"We are well prepared for Brexit. We are ready to provide additional funding of 250 billion pound sterling. We are also ready to meet additional substantial liquidity needs if required," Governor Mark Carney said at a press conference in London.
Just around that time, the pound had dropped 11 per cent to its lowest level in more than three decades to $1.3224. It could not recoup much. The rupee also took a major beating of as much as 96 paise and fell to an intra-day low below 68 to a US dollar. It eventually closed around 71 paise lower at 67.96-97 against the dollar. Taking a closer look at Indian equity markets, all the 30 Sensex scrips were in the red at one point. But by the end of the trading session, seven managed to go into the green. Tata Motors and Tata Steel were the worst performers, while Mahindra and Mahindra and Bajaj Auto ended higher.
But none of the sector-specific indices could close higher. The steepest fall was in the realty index, down 3.74 per cent, followed by the index for industrials, down 3.62 per cent, and metals, which fell 3.59 per cent, due to Tata Steel's weight.
"It helped that the finance minister and the central bank governor reassured investors that India's economic fundamentals are strong and that everything would be done to curb volatility," Anand James, Chief Market Strategist at Geojit BNP Paribas, told IANS.
Vaibhav Agrawal, Vice President and Research Head at Angel Broking, said: "Global markets will continue to be under pressure due to volatility in currency and bond markets in the days to come." During the day, foreign funds were net sellers of shares worth Rs 629.14 crore, while domestic institutional investors were net buyers, investing Rs 114.94 crore.