With Rexit Indian market is expected to be negative on Monday

Domestic equity indices may be in negative on news of central bank governor Raghuram Rajan exiting on Seotember 4, 2016. Markets were hoping that Rajan might be revising his term, but sadly on 18 June he announced of wanting to return to his academic carrier has shocked the market.

According to report on Money Control, experts say that the currency, bond markets and even the equity market may witness volatility in the near term and the market would be closely looking at the quality of his replacement.

“Bonds and currency markets will react negatively and may have an impact on the markets too as Rajan provided confidence to the markets especially on currency stability and inflation. The most important aspect is that now we need an equally competent replacement who is deeply into global financial system as we are closely linked to the issues concerning the world economy,” said CJ George, MD, Geojit BNP Paribas Financial Services on Money Control terming Rajan’s exit as “country’s loss.”

However, Asia markets are expected to remain positive after several weekend polls showed the remain camp regained momentum ahead of a referendum vote to decide the UK's future within the European Union (EU).