You may be aware that amongst the many speed breaker which causes a set back to the market is higher rate of inflation. Mr Raghu had taken plenty of initiatives to see that inflation is reined-in, interest rates are maintained. And to this end, he has been success despite the unsuccessful attempts made by our government and the industrial lobby.
With the latest announcement by Mr Raghu in which he had assured that since Mr Urjit Patel has very closely and worked under him, he shall carry on with his (Raghu) mission during his tenure as RBI Governor.
Mr Urjit who is to chair the Monetary Policy Committe during his tenure shall make sure the inflation rate if brought down to the following levels
Currently (till July 2016) the inflation was hovering around 6.7%.
Another positive for the market is that with good monsoon many states had sown pulses at far higher scale as as result of good rains. With this, in all probability, there shall be bumper crop (pulses) after a gap of over three years. With this, besides Indian farmer getting biggest relief which a cause of suicide, the sales of their product shall add to their buying capacity. It shall result into sale of consumables ; good for the industry - overall.
As for Fed rate cut which oft keeps on looming large on our head, there is no possibility of it turning into a reality before Dec 2016.
To cut it short, it all bodes well for the Indian market although, stock market is far more smarter than we people to charter its course.
Wishing you best rewards in the coming weeks.