Key Indian equity indices open in red but recoup soon

Mumbai: On the first trading day after Reserve Bank of India Governor Raghuram Rajan formally said no to a second term, key Indian equity indices opened in the red on Monday, but regained ground to trade in the positive territory soon after. The 30-scrip sensitive index (Sensex) of the BSE opened at 26,497.11 points and a minute into trading, it was quoting at 26,486.57 points, lower by 139.34 points or 0.52 percent, against the previous close at 26,625.91 points. But two hours after, it was ruling at 26,688.82 points, up 62.91 points, or 0.24 percent. The wider 51-scrip Nifty of the National Stock Exchange (NSE), which had closed at 8,170.20 on Friday, opened at 8,115.75. A minute after, it was trading 56.95 points or 0.70 per cent lower at 8,113.25 points. Thereafter, in line with the Sensex, the key index was up by 13.40 points or 0.16 percent at 8,183.60 points. Ahead of this trading week, analysts had said that the likely exit of Britain from the European Union (EU) and Rajan's decision not to seek a second term at RBI may flare up volatility in the markets in the near term. Investors will also be concerned over an initial deficit in monsoon rains, fluctuations in rupee value and food prices, they said. "It is expected that the market would remain a little volatile due to the global events. Brexit is expected to heighten global volatility, thereby impacting capital flows at home," D.K. Aggarwal, Chairman and Managing Director, SMC Investments and Advisors, had told IANS.