P Chidambaram as Home Minister and his finance portfolio going to Prime Minister Manmohan Singh will boost investors' confidence and stock markets will take it positively, bankers, analysts, investors said today.
Amid reports that Chidambaram is replacing Shivraj Patil, who this morning resigned as Home Minister in the wake of Mumbai terror attacks, a cross-section of bankers and market experts told PTI that the investors' confidence should go up and financial markets should bounce back.
Some others felt that shuffling would not make much difference and the markets will essentially follow the global market, which closed the week on a high.
"The market should bounce back. Prime Minister (who according to reports is expected to keep the Finance) has a proven track record of being a good Finance Minister and with the UPA top guy Chidambaram taking over the Home Ministry, the investors' confidence will improve," Taurus Mutual Fund Managing Director R K Gupta said.
UCO Bank's CMD S K Goel said, "Today the priority is internal security and Chidambaram being a competent person would restore the confidence of the common man in the government.
"He has already set tone and tenor for the progress of financial sector so I do not think that his successor would have any problem in carrying forward the agenda."
Echoing the sentiments, Bank of Baroda CMD M D Mallya said, "Manmohan Singh is known as the architect of the reform process. Therefore, there is no concern for banking sector. Things would progress seamlessly as they have been in past."
However, Paras Bothra of Askiha Stock Brokers and Rajesh Jain of SMC Global felt that the shuffling would not make much difference and stock market will open flat on Monday and take the global cues.