On 3rd September 2013 Indian markets had fallen about 3.5% or 200 odd points on NIFTY with a fear of war on Syria and depreciating rupee.
And the next day was more crucial as world famous economist Raghuram Rajan joined as the governor of RBI. The markets rallied on 4th as the war on Syria had yet not been declared.
In-fact markets have rallied substantially after Raghuram Rajan joining the apex bank. And yes he has become a hero with traditional and digital media praising him!
Rupee has also appreciated a bit and is now floating at 65.25 levels.
NIFTY returns since 4th September:
NIFTY 3 day returns
Banking stocks have gained the most.
What’s more in the store for us?
RBI monetary policy meet has been re-scheduled on 20th of this month. All eyes are on FED’s quantitative easing which would be announced on 17th and 18th of this month.
Chart source – Google Finance