Sectorally, metal and banking stocks rallied the most, while FMCG and realty stocks came under selling pressure.
Among the Sensex pack, Yes Bank, L&T, HDFC, RIL, HDFC Bank, PowerGrid and Coal India were the biggest losers -- falling up to 2.43 per cent.
Silver followed suit and recovered Rs 400 to Rs 34,100 per kg.
The US dollar has risen about 15 per cent since mid-2015.
Sustained demand for the dollar is the reason.
'India's sizeable forex reserves should help stem a possible fall in our currency.'
The belief that the Fed knows something that lesser mortals don't is common.
In the latest large opinion poll, the opposition Bharatiya Janata Party and its allies were forecast to win a narrow majority in the 543-seat lower house of parliament, compared with previous surveys predicting that they would fall short.
Rupee rises by 16 paise against dollar on fresh selling.
Global rating agency Moody's said India's economic growth remains weak and there is little chance of recovery next year.
US interest rate normalisation policy is likely to keep global FX markets volatile.
India's economy is in much better shape to weather tighter U.S. monetary policy.
The RBI fixed the reference rate for the dollar at 64.1505 and for the euro at 72.2720.
US gold futures slid over 1 per cent on Thursday, while silver futures dropped 2 per cent.
Sentiment was largely positive after April IIP grew at 4.9 per cent, spurred by higher growth in manufacturing and mining sectors.
A recovery in rupee, buying by domestic institutional investors, encouraging earnings by select blue-chips and stock specific buying helped the market get back on its feet
Broader markets underperformed indices with BSE Midcap down 0.43% while the Smallcap index fell 0.07%.
Gold slipped to near 5-1/2-year lows on Friday and was on course for a sixth straight weekly fall.
According to the global financial services major, FIIs have recouped around 25 per cent of the outflows seen over the June-August period, when the country witnessed its sharpest bout of FII outflows since the global financial crisis.
India is still the best story in major emerging markets from a 5-year perspective.
Broader market outperformed the frontline indices and also hit their respective all-time highs
However, FII outflows of Rs 545 crore (Rs 5.45 billion) capped the gains in the rupee, which had slumped by 126 paise in past two days.
Fed keeps rates unchanged, sets up possible December hike
On gold buying occasions such as Akshaya Tritiya, Chiraj Mehta points out, investors are often confronted with the question: Should I make just a token purchase, or should I buy more towards building my allocation in the yellow metal?
It is the rupee's biggest single-day gain this year.
Experts said a future rate cut would depend on the inflation.
Despite recent setback, these remain the most appropriate tool for international diversification
RBI will now increasingly shift focus to domestic parameters
The 30-share Sensex ended down 66 points at 28,438 and the Nifty ended down 15 points at 8,633.
It is thought that the RBI has been accumulating dollars to fight odds.
The flawed response to the crisis has fed a us-vs-them mentality in which the banker, the expert, the coastal entrepreneur, the immigrant, the foreigner are all villains. The crisis was not that much of a problem; the response -- the over-reaction, the sovereign debt build-up and the lasting anger -- is the problem, says Mihir S Sharma.
The rupee closed at Rs 66.21 in its last trading session.
The Indian rupee, however, saw the largest bullish bets in one year as worries about inflation eased.
Markets ended lower on Tuesday, snapping a two-day winning streak, as investors turned cautious and booked profit in financials.
While Raghuram Rajan has said in the past that other factors, including domestic fundamentals, outweigh the US Fed policy meet, this time it would be different
The fuzziness of Trump's economic blueprint remains the biggest risk.
64% of 800 investors polled think it will start this week but weak US data suggest it might not be aggressive.
Weaker-than-expected growth in US jobs in recent months had already forced US central bankers to put off a rate hike at their meeting last week
Fed policymakers' deepening uncertainty about their own projections has resulted in the central bank sending mixed messages
The markets stayed on edge last week due to the endless saga of Greece's problems.
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