Sensex set to cheer Urjit Patel's appointment as RBI governor
22/08/2016 00:11
Dalal Street is set to get a lift this week from the appointment of Urjit Patel as the new governor of the Reserve Bank of India (RBI), a move which signals continuity of the existing prudent monetary policy framework in Asia’s third biggest economy. Patel, 52, who currently serves as the deputy governor of the RBI, will succeed Raghuram Rajan whose tenure as the head of the central bank ends on September 4, 2016. With speculation regarding Rajan’s successor now over, and the person chosen to fill his shoes seen continuing his legacy, Urjit Patel’s appointment as RBI governor will act as a positive trigger for domestic stock markets. Further, local bourses may see some volatility as traders roll over their positions due to the August Futures & Options (F&O) contracts expiry this week. Globally, the focus will be on Fed Chair Janet Yellen’s speech on Friday at Jackson Hole, in which she may offer some cues over the timing of the next US interest rate hike. FOMC minutes last week showed that officials in July were split over the need to raise interest rates again in the near-term as they agreed to wait for some more data before deciding on such a move. The 30-share Sensex last week ended down 75.40 points or 0.27 per cent to 28,077.
22/08/2016 00:11
