A new Governor for RBI may be appointed before the start of the monsoon session of Parliament next month even as former RBI Deputy Governor Rakesh Mohan appears to be emerging as the front runner for the job.
As stocks, bonds and rupee turned volatile ahead of the 'Brexit' referendum on Thursday, RBI has promised liquidity support and all necessary steps to ensure orderly conditions in financial markets while Sebi and stock exchanges also beefed up their risk management systems.
In what is likely to appease the pro-growth lobby, Japanese brokerage Nomura has opined that most names being considered to fill the post of RBI Governor have a neutral-to-dovish stance on fighting inflation, unlike the incumbent Raghuram Rajan whose hawkishness is well known.
With the shock retreat from public office of the Reserve Bank of India chief comes the rise to international prominence of long-time nemesis Subramanian Swamy, a nationalist named to the upper house of parliament in April by the country`s ruling party.
The rupee Monday ended lower by 23 paise to close at an over two-week low of 67.31 against the US currency on heavy bouts of dollar demand amid uncertainty in the wake of RBI Governor Raghuram Rajan's decision against pursuing a second stint.
Recovering from its early morning plunge, BSE Sensex Monday soared 241 points as the government unleashed a new wave of FDI reforms and Brexit worries eased while hectic buying by institutions and talking-up by influential marketmen helped counter Rexit jitters.