Key markets took a hit Monday morning during the opening session but recovered quickly, following Reserve Bank of India Governor Raghuram Rajan’s surprise announcement on Saturday he would be stepping down in September.
The BSE Sensex opened 128.8 points down at 26487.11 on Monday and was trading at 26486.57, down 139.34 points, as of 9:16 a.m. Nifty of the National Stock Exchange opened at 8115.75, down 54.45 points. The markets recovered quickly and as of 10:15, the Sensex was up 65 points at 26,691.
At 0336 GMT, the rupee was trading at 67.5300/5325 to the dollar, after hitting 67.70 to the dollar, its weakest since May 24. The currency had closed at 67.08/67.09 to the dollar on Friday.
After witnessing volatile trading sessions, the 30-share benchmark Sensex shed 9.84 points to close at 26,625.91 points in the week ended June 17.
Rajan's replacement is expected to be announced within a month, according to media reports. At least seven contenders have been identified as a possible replacement.
Centrum Wealth Management's ED & CIO Kunj Bansal said, "the new Governor would be expected to continue the good work done by Rajan and take steps to propel the growth engine in the economy."
On Saturday, RBI Governor Raghuram Rajan said no to a second term in the post, a surprise decision the industry and opposition parties termed as nation's loss.
"...on due reflection, and after consultation with the government, I want to share with you that I will be returning to academia when my term as Governor ends on September 4, 2016," Rajan said in a message to RBI staff.
With PTI inputs