Sensex Runs 1,000 points in 3 days: Will Rajan's magic survive the market

The Sensex is trading well above its psychological level of 19,000; gained 1035 points in the last three trading sessions of the week ended September 6. 
The Sensex supported by buying in banks, realty and capital goods sectors. 
Analysts say markets are likely to remain unpredictable in the month of September given global headwinds. Traders will keenly watch the US Federal Reserve's FOMC meet due later in the month, concerns over Syria and Raghuram Rajan's first monetary policy review. 
The RBI's new governor, Raghuram Rajan will hold its first monetary policy meet on September 20, 2013 as against the original date on September 18. 
The policy review will be in focus in light of the Federal Reserve's policy meeting during the same period which is expected decide the direction for markets and capital flows. 
Looking at data points, analysts are of the view that like the tide is slowly reversing as sentiments turned bullish after a strong maiden speech by the new RBI governor Raghuram Rajan. The rupee has strengthened against the greenback as inflow continued in equity markets. The partially convertible rupee appreciated form lows of 68 levels recorded last month to sub 66 levels today. 
The FII’s bought shares worth Rs 1,101.41 crore while DII’s were net sellers worth Rs 492.82 crore on Thursday as per the provisional data from the National Stock Exchange. According to analysts, hopes of QE tapering by the US Federal Reserve are making lot of global investors nervous and emerging markets including India have already faced sell-off ahead of the key event due later this month.