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.
The euphoria the market built a couple of days ago with a gain of 838 points lost its steam under pressure from global markets. The 30 stock BSE Sensex fell by 3.4 pc, reports HT Correspondent.
The benchmark index of the Bombay Stock Exchange gained 639.54 points to move to 14,274.94 points in the week ended on Friday.
Stock markets rallied for the fourth straight session today, with the BSE benchmark Sensex ending 27 points up at 18,300.90 on continued buying by funds and retail investors amid strong third quarter earnings posted by Tata Steel.