“While I was open to seeing these developments through (monetary policy committee and banks’ clean-up), on due reflection, and after consultation with the government, I want to share with you that I will be returning to academia when my term as Governor ends on September 4, 2016," this is what Reserve Bank of India Governor Raghuram Rajan told his colleagues while bidding them goodbye.
While the news of Raghuram Rajan’s exit or ‘Rexit’ came on Saturday, market observers braced themselves for a difficult Monday. But, instead the market put up a strong show with the BSE benchmark Sensex closing 241 points or 0.9% higher at 26,867 points.
Experts feel that since the announcement came on a weekend and not a weekday, it saved the market from any irrational knee-jerk reaction. “Market is in bullish mode and so any negative news is get