The impact of new RBI Governor Raghuram Rajan was evident across Indian markets on the second day as well. While the stock markets continued with their rally as Sensex and Nifty closed over 2 per cent up, Rupee also carried on with sharp recovery as it closed after appreciating by over `1. Gold on the other hand, registered one of the biggest intra-day falls due to the speedy recovery in the currency.
It was another great day for equity traders as Sensex breached 19,000 psychological level while Nifty attempted to cross the 5,600 mark during Thursday’s trading session on back of heavy buying. Sensex rose to its three-week high and finally closed 412 points up at 18,797.76. Nifty rose by 144.85 points to 5,592.95 after Rajan announced multiple steps to help rupee recover and improve the economic situation of the country.
Sensex in the last two trading sessions, since Rajan took over, has gained 745 points. While the new proposed measures by Rajan eased the pressure on the currency as it started showing signs of recovery, stock markets also welcomed the new RBI Governor with fresh buying.
Apart from Rajan effect, another reason which backed the market rally was the heavy buying in all the beaten down sectors while IT, technology and healthcare shares saw profit booking. Experts said that investors were again showing interest in the heavily corrected sectors and have started value buying.
The bank index rose by 9.3 per cent followed by real estate, consumer durable and public sector indices which climbed by 5.41 per cent, 4.54 per cent and 4.50 per cent respectively. IT and technology indices fell by 2.95 per cent and 2.19 per cent while healthcare index closed with a marginal loss of 0.22 per cent.