Rupee battered, markets sulk...investors lose

The battered and bruised rupee dragged markets lower today with investors having no place to hide, despite positive markets in Europe and Asia.

The Sensex ended the day lower by 156 points, at 16026 points, while the NSE Nifty closed the day lower by45.55 points. The biggest reason for today's fall was the weak rupee, which hit a frightening low of Rs 55.34 to the dollar at 3.25 pm, dragging the markets with it.

Among the shares that pulled the indices lower were State Bank of India, which ended in the red, despite opening positive in early trade. Among the other shares that ended lower today were Larsen and Toubro, Tata Power, Sesa Goa and Sterlite Industries.

Today's fall in the markets has come despite strong closings in Asia and higher opening in European markets. The DAX, CAC and the FTSE were all trading higher at 3.00 PM IST. The rupee which has reached frightening levels, has failed to hold, despite RBI measures. The government remains a mute spectator, despite the RBI trying to fight the raging battle all alone.

Meanwhile, there were reports that Japan was downgraded by Fitch, which may affect sentiments adversely in Asia when trading opens on Wednesday.

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