The markets were extremely choppy and were driven by the movement of the Indian Rupee. On Wednesday, the Indian Rupee plummeted to Rs 56.40. The late evening announcement of the steep petrol price hike by Rs 7.50 saw the markets rallying on Thursday. The price hike made the markets believe that the much needed diesel hike was finally going to happen, but once again on some flimsy ground, it has been postponed. The reluctance of the Government to increase prices and reduce the fiscal deficit is affecting the Rupee and the markets.