Zee Media Bureau
Mumbai: Having faith in India's growth story amid good monsoon prospects and GDP growth, Stock markets took Raghuram Rajan's decision for 'no second term' in stride and reversed early losses.
Sensex recovered from early losses and is trading up 74 points at 26,699; while Nifty recovered 19 points and trading at 8189 points.
It seems that the investors and FIIs are firm on India growth story amid the hopes of good monsoon and buoyant GDP prospects.
The FII investment in Indian equities have been crucial as they have been the driver behind the India’s bull run in recent years.
Earlier, Sensex opened in the red shedding 166 points in the opening trade, while Nifty had fallen by over 50 points.
Sensex had opened 26459.33 down 166.58 points; Nifty dropped to 8112.10 down 58.10 points
Rupee also nosedived 61 paise against US dollar to 67.69 in early trade.
Trade analysts had expected the stock market to react negatively to RBI Governor Raghuram Rajan's announcement on Saturday that he would returns to academia once his term gets over in September. Much speculation was abuzz whether or not Rajan will get extension.
With Rajan’s departure, the continuation of the RBI’s policy, especially in taming inflation and cleaning up massive bad debts held by state-run banks, could become a concern.