Ace investor Rakesh Jhunjhunwala on Monday said Raghuram Rajan’s exit as RBI Governor may affect the markets, which could see a knee-jerk reaction. He was speaking to CNBC TV and added, “there will be no change as there is no crisis in Rajan going.”
Raghuram Rajan in a surprise move on Saturday in a letter to staff had announced that he will not go for a second term. Rajan’s decision comes at a time when investors had been bracing for heavy volatility from global markets as Britain is due to vote on Thursday on whether to leave the European Union.
Reacting to the news, the BSE Sensex opened over 150 points down and Indian rupee slipped to its weakest in nearly a month and nosedived by 61 paise to 67.69 against the US dollar in the opening trade on Monday. The rupee was trading at 67.47 to the dollar at 9.34 am, after hitting 67.70 to the dollar, its weakest since May 24. The currency had closed at 67.08/67.09 to the dollar on Friday.
Here are 5 things Jhunjhunwala said on Raghuram Rajan’s exit and stock markets
– Markets may face a knee-jerk reaction, but it is more concerned about Brexit, monsoon and GST passage
– Markets will have a U shape recovery.
– On Raghuram Rajan’s exit, Jhunjhunwala said, “We are unecessarily second guessing and worrying”.
– Institutions and countries are bigger than individuals
– No governor is a ‘Yes’ man