Finally the people of Britain have decided to exit the European Union through referendum.

Due to which the global markets are witnessing the fall in equity and currency markets.

Indian markets have also fallen along with global peers. The volatility may continue for another couple of days or so.

Impact on India:

There will not be any major structural impact on Indian economy in the medium to long term. Exposure to euro zone for the Indian economy as a whole is not very large.

Though there are some companies from sectors like IT and Auto which has operations in Britain will take a brief hit . However there are 18 months for the real exit to happen. In the mean time Companies will able to reposition themselves.

In the short term there will be some impact on our currency. However the RBI is a position to handle the situation better because of our record forex reserves.

Do Not Panic:

BREXIT is not the end of the world.

Our macro position is much better compared to last 2 years.

We have seen other countries from eurozone in the past which lead to the global volatility.

Last year in the month of August we have seen china devaluing their currency which resulted in global market correction. And in another 2 to 3 weeks of time markets recovered.

Global panics are an opportunity for us to buy Indian equities. It is there in the past, in the present and it continue to be there in the future.

Stay calm, avoid media.

Events like these should be looked as an opportunity to invest systematically.

Cash combined with courage in a crisis is priceless.”-Warren Buffett