Markets this week: Sensex gains 3.5%, ICICI surges 19%
The BSE Sensex rose 3.5 percent for the week ending September 6, as sentiment on Dalal Street was boosted after Raghuram Rajan took charge as the new governor of the Reserve Bank of India.
Rajan kicked off his term with a bang on Wednesday, announcing several measures to support the rupee and unveiling steps to liberalise financial markets and the banking sector. Hopes that the government might announce a one-time hike in diesel prices to cut its steep import bill also helped the stock market.
The rupee rose to its strongest against the dollar in nearly two weeks on Friday, rallying on growing expectations the unit has been badly oversold.