Appointment of new RBI Governor to add positive vibes

Mumbai: The appointment of a new Reserve Bank of India (RBI) Governor is expected to give a positive fillip to the Indian equity markets during the upcoming week. Market observers cited other major factors such as caution over the increased chances of a US rate hike, derivatives expiry, fluctuations in global crude oil prices and the pace of foreign funds inflow to have a bearing on movement of key indices. Come Monday, the equity indices are expected to open on a mildly positive note following the government's decision on Saturday to appoint economist and banker Urjit R. Patel as the next Governor of the RBI to succeed Raghuram R. Rajan. "This is a positive development as Patel knows about RBI's functioning. Equity markets are expected to give a mildly positive reaction to the appointment," Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS. Patel, 52, a Deputy Governor since January 2013, will take over as the 24th chief of India's central bank on September . "Equity market's would welcome this change. The increased chances of the continuation of the same policies at the RBI with this appointment will add positivity in the equity markets on Monday," Anand James, Chief Market Strategist at Geojit BNP Paribas Financial Services, told IANS.