It has been two weeks since the UK opted to leave the European Union in the crucial Brexit referendum.

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Markets seem to be getting over the panic after Britain’s surprise move, which triggered of a massive panic selling for two-three trading sessions.

During this week, the global markets were mixed with certain exchanges taking a major hit while other relished unexpectedly.  

The Indian equity markets soared this week, touching a new 2016 high. The Brexit effect on the BSE and National Stock Exchange (NSE) was offset with the government clearing the much-awaited 7th Pay Commission recommendations in its Cabinet meeting and stable economic indicators. 

On June 23, Brexit day, Sensex had crossed the 27,000-mark, closing the day at 27,002.22. On the day after, the 30-share benchmark took a beating along with all the other major indices around the world.

However, after that, the Sensex has been above the green line for five straight days. On July 1, the BSE closed at 27,144.91, surging by 145 points compared to the previous day’s session. The index was boosted by buying interest in Capital Goods, FMCG, Banking, and Pharma stocks. 

After falling slightly over 1% in the aftermath of the Brexit vote, Nifty also remained above the red line for the rest of the week, crossing the 8,300-mark. The 50-stock index rose by 0.70% from 8270.45 on June 23 to 8328.35 July 1, 2016. 

The number of stocks on the BSE above their 200 Daily Moving Average (DMA), is 60% which makes it healthier than the time when the Nifty touched it's all-time-high mark of 9,120 in March 2015. At that time, only 55% of the stocks were above their 200 DMA, HDFC securities says.

The Indian rupee had reached an all-time-low of 67.885 against the dollar after the Brexit vote. However, since then, it has recouped its losses and remained steady for three trading sessions. The rupee ended the week at 67.190 a dollar, up 0.332 paise or 0.49% against the US dollar. 

The week ahead for Indian equities...

A good monsoon and the possibility of the GST Bill’s passage in upcoming Parliamentary monsoon session, may have a positive impact on the domestic market, HDFC securities said.

Global markets :

UK's FTSE 100 has risen by 3.01% to 6,577.83 from the 6,338.1 level on Brexit day. The market slumped for two subsequent days, but then managed to regain its losses as central banks promised to step in to ease pressure. 

The Pound (GBP) on Brexit day fell 1.12% to 0.0099 against the Indian rupee (INR) and closed the week at 0.0112 to the rupee. The pound depreciating is an unexpected positive for companies like Tata Steel and Tata Motors (JLR) that have manufacturing operations in the UK.

Also, the pound against dollar appreciated to 0.6721 by 1.15%. After a week it has now depreciated by 11% at 0.7540.

Another European market, however, didn’t take the Brexit too well. In the week, DAX dropped 5.37% to 9,706 from 10,257.03 (on June 23). 

The euro also took a beating against the rupee -- after appreciating on Brexit day to 0.0131, it now up 0.75% at 0.0134. 

The euro performed well against dollar. On Brexit day, euro appreciated at 0.8780, and has also been steady a week later at 0.8980 down by 0.27% from previous closing.

The US markets have rallied for the third day on the trot, with the major indices recouping anywhere between 80 to 92% of their UK Referendum losses, says HDFC report.

NASDAQ ended at 4842.67 on July 1, down by 1.37% from the level of 4910.04 (on June 23).  The dollar remain unchanged at 0.0149 against rupee.

Asian market took a little time to overcome Brexit. Nikkei 225 was down 3.42% to 15682.48 from 16238.35 (on June 23). A day after Brexit, the Nikkei 225 dipped nearly 8%, but was positive for 5 trading session.

The Hang Seng was marginally down at 20794.37 from 20868.34 (on June 23). On July 1, the Shanghai SE Composite index ended at 2,932.48 up 2.87% from its previous closing.