After opening the day on a positive note, stock markets in India have continued their momentum. Sectoral indices are trading on a positive note with stocks in the telecom sector and realty sector witnessing maximum buying interest.

The BSE Sensex is trading up 162 points (up 0.5%) and the NSE Nifty is trading up 48 points (up 0.5%). The BSE Mid Cap index is trading up by 0.7%, while the BSE Small Cap index is trading up by 0.9%. The rupee is trading at 64.31 to the US$.

In the news from global financial markets, as reported in Reuters, British parliament’s upper house is of the view that Brexit will have a profound and unpredictable effect on UK.

As per the committee of lawmakers from the parliament, Brexit poses a fundamental challenge to the future of the United Kingdom by removing the European Union law that has helped to bind it together.

It also said Brexit would lead to a significant increase in powers and responsibilities for local institutions, in areas such as fisheries and agriculture. Any attempt at a power grab by either side would only add to instability.

The vote to leave the EU last year has highlighted tensions among the UK’s four constitution nations. While England and Wales voted to leave, Scotland and Northern Ireland voted to remain in the EU.

Earlier this year, in March, UK Prime Minister Theresa May triggered the formal two-year process of Brexit negotiations. This came after the British Ambassador in Brussels hand delivered a letter to European Council President Donald Tusk invoking Article 50 of the Lisbon Treaty, officially notifying the European Union (EU) of Britain’s decision to withdraw from the bloc.

British MPs overwhelmingly approved a bill allowing Prime Minister Theresa May to trigger negotiations for the UK’s exit from the EU.

Market participants are gauging the effects these developments will have on Europe and global trade.