Business leaders, who made strong demands for “tougher laws” and “stronger and firmer leadership” to tackle terrorism, said Chidambaram can provide the right kind of leadership to tackle the menace.

The industry reeling under demand slowdown, is expecting bolder initiatives from the government to the global economic crisis with prime minister taking direct charge of the finance ministry.

The business leaders are not much worried over Singh, who is remembered as an architect of India's economic reforms, getting extra burden of the finance portfolio.

“Chidambaram has done extremely well as finance minister and we are sure he will be equally successful in improving the internal security,” said Assocham secretary general D S Rawat.

Ficci secretary general Amit Mitra said the challenge for Chidambaram is to restore confidence of the commonman into the police system.

He also needs to ensure that the country gets tougher laws to deal with terrorists. After judicial ruling is announced the punishment given must be carried out fast. “This is a challenge for Chidambaram,” Mitra said.

“The market should bounce back. The prime minister 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 CMD S K Goel said, “Today the priority is internal security and Chidambaram being a competent person would restore the common man’s confidence 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.”

Some others, however, felt that it would be business as usual and the shuffling would not make much difference and the markets will essentially follow the global market, which closed the week on a high.

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.

Bank of Maharashtra CMD Allen Perera said that the change in portfolio for Chidambaram, who has been a very competent finance minister, would “send a strong signal as far as security of the nation is concerned”.

“Reform agenda would continue as usual since such decisions are a collective decision by the Union Cabinet. I do not see that the confidence of the banking and financial sector would have any negative implication with this development,” Pereira said.