His speech was inspiring to a great extent and consoling too, especially for the uncertain investors. However, there were murmers that he could not single-handedly stabilize the economy, which is under the influence of slowing growth and a record high current account deficit that has helped fuel a drop in the rupee of as much as 20 percent this year.
Rajan's biggest challenge would be handling pressure from the investors to roll-back the central bank's controversial steps to defend the rupee by draining cash from the market and raising short-term interest rates. This could help investors to boost growth.
Meanwhile, the rupee revived and the share prices surged on Thursday. On an overall, the Sensex projected a good score with an increase by 300 points.