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. A Reuters poll shows that the Indian unit has likely bottomed out.
Here are the top five gainers and losers:
ICICI BANK: India’s top private sector lender was the star performer of the week with its shares surging more than 19 percent, outperforming the 10 percent rise in the BSE banking sub-index. Banking stocks jumped a day after Raghuram Rajan unveiled steps to help the rupee and the banking sector.
Despite the sharp rise this week, the stock is still down 20 percent this year. Analysts are are optimistic about its future performance. Of the 49 analysts covering the stock, 46 have a ‘buy’ or equivalent rating while three have a ‘hold’, according to Thomson Reuters data.