Brexit, a very big Issue world has gone through and transformed a lot of things yet. Brexit is the exit of Britain from European Union. This decision has made an impact on India in layers. But the market experts say that it is a short term effect will not affect much in the future. The Market dropped sharply after the result of the Brexit referendum result on Friday. However, market managed to scale it up to an average level.

Companies in sectors such as automobiles, information technology services, textiles, pharmaceuticals, jewellery and leather are most vulnerable to changes in demand and currency value. Major IT firms like TCS, Accenture and Cognizant are likely to be the most impacted in the IT sector. Indian IT companies may need to establish separate headquarters/operations for EU, leading to disinvestment from the UK and diversion of activity from the UK to EU. Some garment exporters are also likely to feel the pinch of the Brexit effect. Indian Corporates whose units are located in Europe/UK they are getting adversely impacted. Prices of precious metals also hiked a lot during the effect.

India's earnings growth is the highest among the emerging markets and the Indian rupee has been a relatively better performing emerging market currency and as a result it is least affected by the Brexit. Long-term investors need not to worry and not change their asset allocation based on events like this. There is a little decrease in India’s GDP growth, which is not a point to be affected by as India is the fastest growing major economy of the world. Overall, it does not seem to be a significant downside in India.