After rising nearly 130 points, the benchmark Sensex on Monday closed with a slender gain of 21.31 points on late selling in bluechips including Infosys, HDFC and TCS despite a firm trend in the global markets.
In line with the stock market, the rupee dropped by 28 paise to 61.32 against the dollar in late morning trade on Wednesday on fresh demand for the US currency from banks and importers.
The BSE Sensex was trading down at 118.89 points or 0.56% in the pre-noon trade Wednesday. The Sensex touched a high of 21,200.51 points and a low of 21,110.62 points during the trade so far.
The rupee surged to its highest levelin nearly four months in intra-day trade and fell back to close with a 28 paise gain at 61.13 against the dollar today, boosted by stocks that climbed to a record after BJP won three out of four state assembly elections.
In volatile trade, the benchmark Sensex broke a three-day up move and closed 43.09 points down on Wednesday on emergence of profit-booking and weak global cues.
The rupee fell by 5 paise to 62.36 against the dollar on Tuesday as the dollar gained after strong US economic data sparked expectations of an early tapering of the Federal Reserve stimulus.
The benchmark Sensex rose 106 points today to the highest level in a month after data showed economic growth in the second quarter was better than expected and manufacturing activity expanded last month.
The Indian rupee rose to a near two-week high today as manufacturing activity returned to growth in November, but trimmed gains after the central bank said state-run oil companies were sourcing all of their dollar needs in markets.
The benchmark BSE Sensex tumbled by over 400 points in the afternoon trade on persistent selling pressure from operators as Asian stocks fell after minutes from the Federal Reserve's last meeting signalled US stimulus may be reduced in coming months.
The 30-share BSE barometer, which had gained 1275 points in the past three sessions, added another 254.16 points at 14,104.20.
Buoyed by the ruling UPA government's victory in the trust vote, the 30-share index was quoted 14,757.21 at 10 am.
At the forex market, the local currency resumed firm at 41.92/93 a dollar from its last close of 42.09/10 a dollar and later appreciated further to 41.84/85 a dollar in late morning deals.
After gaining 188 points in the opening session, the Sensex fell back to reveal a loss of 191.18 points at 14,751.10 at 1300 hrs.
The 30-share BSE barometer pared the early gains to settle at 14,777.01 points, a loss of 165.27 points from last close.
The 30-share BSE barometer, which opened lower by 446 points lost further and closed 502.07 points down at 14,274.94 points.