Markets Crash as Rupee Slides

Indian markets had yet another volatile and depressing session with Sensex crashing 449 points and NIFTY falling 143 points. The markets were trading in the red all day today after a weak opening in the Rupee. All the benchmark indices closed in the red today with stocks from consumer durables, realty and banking stocks taking major knocks. The stocks in broader market had yet another night marish day and most of the active mid cap stocks are on their way to becoming penny stocks. After BHEL's crash yesterday it was Tata Power's turn today. The stock was down 15% after a poor Q1 results. The only notable exception was Crompton Greaves which ended 3% higher on a gloomy day post its Q1 results.  

The Rupee had a roller coaster session today. The currency hit a lifetime low of 61.80 intra-day today before closing up 11ps at 60.77. The only silver lining is that Rupee third time running has failed to close below 61.20, a level from which it has been rebounding every time. Market participants believe that RBI has sold dollars through state run banks to halt the currency's slide. Market sources are expecting some more measures in the next few days to strengthen the beleaguered rupee.The pull back came late in the day after the central bank named Raghuram Rajan as the successor to Subba Rao. Raghram Rajan, a MIT graduate will take over as the RBI Governor on 04^th Sep 2013.


----- Harish Sridharan