Rajan's confidence reflects on Sensex, jumps 300 points

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Raghuram Rajan
Mumbai, Sept 5: It was RBI chief Raghuram Rajan's first day in office and the Sensex saw improvements already. His take-over speech () was brief, but focused, outlining the measures he wishes to take to support the ailing economy, which witnessed its worst in the past two decades.

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.

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