Stocks to cheer appointment of Urjit Patel as RBI Guv: Experts

Stock market is expected to cheer the appointment of Reserve Bank's Deputy Governor Urjit Patel as the new Governor, which the experts say sends a clear message to investors about continuity in policy.

"The newly appointed Governor would be good for the markets as there would not be any drastic disruption in the polices as he being the existing deputy governor is abreast of the economic matters in the country. We see continuation of the polices as a positive trigger for the market," said Jimeet Modi, CEO, SAMCO securities.

Patel will be the 24th Governor of RBI and will succeed Raghuram Rajan, who will demit office on September 4.

"Institutional investors both domestic and foreign would welcome the appointment of Patel as successor to Rajan. It signals a seamless continuity in the policies pursued by the RBI to conduct its monetary policy in an independent manner. Markets would strongly cheer the appointment," said Ajay Bodke, CEO & Chief Portfolio Manager - PMS, Prabhudas Lilladher.

As deputy governor, Patel headed the RBI panel to draft the monetary policy report, which became the basis of the ongoing reforms at the apex bank.

"Being the architect of the committee on monetary policy reform, his appointment indicates independent policy making.

"In a way hence, his appointment mellows down somewhat the concerns raised in several quarters on Rajan's exit," said Dhananjay Sinha, Head-Institutional Research, Economist & Strategist, Emkay Global Financial Services.

V K Vijayakumar, Investment Strategist, Geojit BNP Paribas said Patel can be expected to continue the hawkish policy of Rajan. It will be good for the economy in the long run.

Over the past week, Sensex and Nifty slipped 75.40 points or 0.26 per cent, and 5.25 points or 0.06 per cent, respectively.

Centrum Broking, ED & CEO, Sandeep Nayak said: "Patel's elevation signals consolidation and continuation of the inflation targeting monetary policy stance of RBI under the regime of Rajan. This is welcome and international investors will receive this very positively as continuity in policy formulation assures consistency and predictability of the Central Bank's monetary stance." Moreover, stock markets are likely to remain choppy this week amid derivatives expiry, experts added.