Stocks zoom on back of Das' RBI guv appointment

The stock markets zoomed on Wednesday, gaining more than close to 1.8%, on back of appointment of Shaktikanta Das as the RBI governor.

The 30 share BSE Sensex closed 629 points, or 1.79%, up after the day's at 35,779 points. The broader index, 50-share NSE Nifty also jumped by 188.45 points to close at 10,737.

Market analysts said that investor sentiment got a boost after the appointment of the new RBI Governor on hopes that it will now address the liquidity issue and could help public sector banks in their recapitalisation programme, besides helping in stabilising short-term investor sentiment.

Das, who assumed charge early morning today, named the new governor of the Reserve Bank of India after Urjit Patel abruptly resigned amid a face-off with the government over issues related to governance and autonomy of the central bank.

The bank stocks were reflective of this mood. Nifty PSU Bank Index closed 2.08% up at 2,940.80, while Nifty Private Bank Index jumped 2.00% to close at 15,041.80 points.

"People are of opinion that the new governor might go easy on the lending norms, that is why the there is a positive sentiment," brokers said.