Shares of companies with exposure to the UK saw revival in buying and rose by up to 3 per cent today as investors saw fewer chances of Britain leaving the European Union.
Tata Motors rose by 3.28 per cent, Bharat Forge 2.03 per cent, Hindalco 1.52 per cent and Tata Steel 0.53 per cent on BSE. Shares of Dr Reddy’s Lab climbed 2.18 per cent.
In the IT pack, Infosys gained 1.08 per cent and Wipro was up 0.12 per cent.
According to reports, Indian IT companies get anywhere between 6-18 per cent of their revenues from the UK, which has traditionally been the gateway for them to Europe.
“Rising hopes of Britain remaining within the EU nudged Indian stocks to break free of the sluggishness during the recent days. Europe’s firm opening added further fuel to the rally, pushing Nifty back towards a month’s high,” said Anand James, Chief Market Strategist, Geojit BNP Paribas Financial Services.
Millions of Britons began voting today in the historic referendum that will decide whether the UK will stay in or leave the 28-nation bloc after an acrimonious campaign.
There have been fears that exit of Britain from the EU could trigger significant capital outflows, including those from the Indian market.
Meanwhile, in the broader market, the Sensex rose 236.57 points to end at 27,002.22.