Rajan's exit: Sensex dips; Rupee tumbles

June 20, 2016 09:23

The surprise announcement of Reserve Bank Governor Raghuram Rajan to not seek a second term seemed to have rattled both the equity and forex markets today with the Sensex shedding 163 points in early trade while the Nifty was down over 50 points.

Rupee nosedived 61 paise against US dollar to 67.69 in early trade before recovering

Traders had feared that Dr Rajan's exit from the RBI may lead to capital outflows from the country at a time when global investors are already nervous ahead of the key Brexit referendum in UK on Thursday.

Stock market experts had earlier observed that there could be some knee-jerk reaction in early trade, while currency market may also turn wobbly following the governor's decision not to seek an extension for his second stint at the mint street.

The negative sentiment from Rajan's exit is expected to be aggravated by the already volatile global market which is currently weighed down by the Brexit next week.

And on the domestic front, the delay in monsoon rains and also the ensuing maturity of foreign currency deposits worth about $20 billion are also expected to weigh on investor sentiment, they said.

« Back to LIVE

TOP STORIES

IAF chief advocates public-private collaboration to explore space potential

In his address, the air chief marshal underlined that with a massive surge of new technologies and opening up of space to private players, there is a "disruption in the established scheme of things".

'It was world-class batsmanship from Rahul and de Kock'

Lucknow Super Giants pacer Matt Henry was in awe of the "world-class batsmanship" of skipper KL Rahul and Quinton de Kock, saying the century-plus opening stand between the duo helped them outclass a "very good" Chennai Super Kings...

Fleming hails Dhoni's batting: 'It's inspirational!'

His brilliant form notwithstanding, Mahendra Singh Dhoni cannot be promoted in the batting order as his recovery from a knee injury has restricted his ability to wield the willow for long periods, said Chennai Super Kings coach Stephen...

Explosions rock pro-Iran military base in Iraq

However, the reason behind the explosions is not known as yet.

CSK Vs LSG: Who Bowled Best? Vote!

Krunal Pandya emerged as the wrecker-in-chief on Friday night.