Central bank direction on interest rates both national & international always used to be big expectations and directions of the markets would take course after the announcements. For the first time in the history of our financial markets, expectation was not on interest rates. It was the governor himself who became the news, the expectation of Raguram Rajan’s continuation as the Governor for the second term became hot.
Press had a joy ride, at least which was what Rajan told in the press meet when asked about the rumors. It is strongly believed that he will continue as governor for the second term, still there are some weak hands which are speculating and are wanting to en-cash on the rumors.
After all why would he not continue, financial markets world over has regarded him as the very best central bank governors in the world today. Very few can match his experience, expertise and knowledge. As a country too none of us would want to lose a person of his caliber. The day he took over as governor in 2013, financial markets turned for good and has been continuing. A lot of bold decisions like the cleansing of the PSB’s would not have happened, if not for him.
It is because of this cleaning that NBFC’s became attractive and companies like BAJAJ Finance, SKS Micro, Chola Fin, etc have had very good price rally. Automobile, Pharma and many more sectors benefited. We do have some of the above businesses in our portfolio which have been making good gains.
He will continue for sure and India is going to see one of its very big growths happening in the next 3 years. And probably, after that, move ahead to become a developed economy. All of it will happen not only because of Rajan, it is the whole circuit of people who have lined up along with Narendra Modi, economic conditions, business just in the cusp of a great growth.
Be invested in the India story; make a killing as the time is ripe.