Sanjay Malhotra becomes the new Governor of RBI, mixed reaction from stock market, rise in banking stocks

New Delhi. Revenue Secretary Sanjay Malhotra has been appointed as the new Governor of the Reserve Bank of India (RBI). He will replace Shaktikanta Das. After his appointment, the stock market initially saw a slight decline, but soon the market recovered. Indian market witnessed improvement due to fresh inflow of foreign funds and rise in Asian markets.

Recovery after stock market fluctuations

After the appointment of Sanjay Malhotra, Sensex and Nifty fell during early trading, but the market immediately made a comeback. Investment by foreign investors and positive signals in global markets supported the Indian market. Meanwhile, the rupee also strengthened by 8 paise to 84.78 against the dollar.

Banking shares showed strength

Banking shares witnessed a rise in early trading on Tuesday. Shares of SBI, Kotak Mahindra, and ICICI Bank registered gains. It is clear from this that the banking sector has positive expectations from the appointment of Sanjay Malhotra.

Deepak Jasani, Head of Retail Research, HDFC Securities, said, “China’s top leaders have indicated that more incentives will be provided next year to revive the country’s economy.” This led to a rise in the Asian markets, which also benefited the Indian stock market. The price of global oil benchmark Brent crude fell 0.29 percent to $ 71.93 per barrel.

Attitude of foreign and domestic investors

According to exchange data, on Monday, foreign institutional investors (FIIs) bought shares worth Rs 724.27 crore, while domestic institutional investors (DIIs) sold shares worth Rs 1,648.07 crore. On Monday, BSE Sensex fell 200.66 points to close at 81,508.46, while NSE Nifty fell 58.80 points to close at 24,619.

rupee improvement

On Tuesday, the rupee gained 8 paise, recovering from its all-time low. Rupee reached 84.78 against the dollar. This improvement in the rupee is due to foreign fund inflows and positive trend in the domestic equity market.

Amit Pabari, MD, CR Forex Advisors said, “During the tenure of Shaktikanta Das, policies were adopted which did not lead to a sharp decline in the rupee. “There are mixed reactions to the appointment of Sanjay Malhotra as his revenue-centric stance creates some uncertainty.”

Rupee in interbank foreign exchange market

At the interbank foreign exchange market, the rupee opened at 84.80 and traded in a narrow range at 84.78, registering an increase of 8 paise over its previous close. However, later the rupee was also seen trading at 84.82 against the dollar.