Indian markets today staged a smart pullback with the Indian rupee
rebounding 56 paise to 67.07 and the Sensex surging 333 points on
apparent hopes pegged on Raghuram Rajan taking over as RBI Governor.
The BSE Sensex opened higher and moved in a range of 18,188.43 to 18,612.60 before
settling at 18,567.55, a rise of 332.89 points or 1.83 per cent. Gains
were led by metal, healthcare and auto stocks. Investors became richer
by around Rs 1 lakh crore as overall 1,347 stocks rose on BSE.
New RBI Governor Raghuram Rajan: Quotes
Markets were relieved that reports of missile firings yesterday turned out to be tests carried out jointly by Israel and the US. Yesterday, Sensex fell 651 points to 1-week lows.
On the currency side, suspected intervention by the central bank helped the rupee retreat from near record lows and end at 67.07 against the dollar, up 56 paise. The rupee had lost 193 paise in previous two sessions.
Raghuram Rajan takes over as 23rd Governor of Reserve Bank of India
The strong show in the markets was a positive sign for
Raghuram Rajan, who took over at the helm of the RBI, which has been combating a currency slump, high inflation, low growth and a widening current account deficit.
Market participants are hopeful the new RBI Governor will draw upon his global experience to bring the economy back to a higher growth path and mount a more effective defence of the