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Sensex holds its ground, despite rupee erosion

Aug. 28, 2013 at 9:10 AM

NEW DELHI, Aug. 28 (UPI) -- The rupee closed at an all-time low for the second consecutive trading session Wednesday, but India's Sensex stock index held its ground.

The rupee closed at 68.80 to the U.S. dollar, but the Sensex added 28.07 points or 0.16 percent to 17,996.15 despite ongoing worries.

Analysts are pointing to tensions over a possible military intervention in Syria and the weak rupee for much of the market erosion.

The Sensex index has lost slightly more than 1,000 points in August, The Economic Times reported. For the year, the Sensex is down more than 7 percent.

The Nifty listing of 50 select stocks has plunged 8 percent so far in August alone, the Times reported..

Analysts also say that a recently passed food program for the poor, the Food Security Bill, has provoked concern over government debt, which has undermined India's currency.

"Our best advice continues to be keep as much cash as you can, be more invested in defensive sectors ... since the rupee is unlikely to appreciate from here in a hurry," said Vikas Khemani, chief executive officer of Edelweiss Securities.

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