A welcome change in mood! - IIFL

The entry of a new RBI governor is seen as a harbinger of good things. The new RBI governor, Dr. Raghuram Rajan has emphatically stated that while change is risky, not changing is even riskier. Stating that the RBI has always changed when needed, not following the latest fad, but doing what is necessary, he cautioned that some steps taken may not make him popular.

The measures announced by Dr. Raghuram Rajan to liberalise financial markets and the banking sector will pep up sentiment in the short term. The outlook is a strong start for the Indian market. The Nifty is expected to flirt with the 5600 levels. September month has a history of giving good monthly returns and investors will hope history repeats itself after a terrible August.

Global cues also appear health with possible US military intervention in Syria seen as limited. Meanwhile, the Prime Minister Manmohan Singh is expected to convey to the US President Obama for an orderly exit from the monetary stimulus programme, instead of a sudden withdrawal, says a report.

Source : Equity Bulls

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