BSE FMCG and PSU indices gained by almost 1 per cent each.
The Asian markets are largely trading in the green, taking heart from a positive close on Wall Street.
The rupee on Thursday lost 25 paise to 55.72 against the US dollar in early trade at the InterbankForeign Exchange market as the American currency gained strength against other currencies overseas.
Snapping a four-day gaining streak, the BSE benchmark Sensex on Thursday fell over 57 points in early trade due to profit-booking after recent gains amid a mixed trend in other Asian markets.
'If an investor is ready to stay put for the next five years, one can consider investing in mid- and small-cap funds, but through SIPs.'
The Reserve Bank has taken some steps to shore up the domestic currency.
US brokerage Bank of America-Merrill Lynch on Tuesday said its sees the first rate cut this fiscal only in March next as inflation is expected to fall only by December end on a decline in commodity prices driven by the US Fed tapering.
Forex dealers said a higher opening in the domestic equity market and dollar's weakness against other currencies overseas after the US Federal Reserve kept its easing policy unchanged also supported the rupee.
Insufficient rainfall will have a negative impact on the economy.
This could be attributed to the attractive valuation of the Indian equities after the sharp correction during the first quarter of calendar year 2020 and significant depreciation of the Indian rupee against USD, which provided them a rather good entry point.
Market experts poohpooh fears of capital flight from India.
Among top losers that dragged down key indices were Infosys, TCS, Reliance, SBI, Tata Steel and ITC, falling up to 2.15 per cent.
The broader NSE Nifty managed to end higher for the second day at 10,426.85, up by 5.45 points or 0.05 per cent after shuttling between 10,478.60 and 10,377.85, intra-day.
So far in 2019, India has been one of the highest recipients of foreign flows among Asian and Emerging Market (EM) economies
'A strong foreign exchange reserve is the best safety net against global spillovers.'
Tata Motors was the biggest loser in the Sensex pack, tumbling 2.47 per cent, followed by Reliance Industries (2.44 per cent), Maruti (1.84 per cent), SBI (1.76 per cent) and Bajaj Finance (1.23 per cent).
Financial shares were among the top gainers with HDFC leading the gains.
Christine Lagarde warned of a repeat of high market volatility.
Foreign brokerage HSBC has said it expects the rupee to trade at 60-levels by December against the dollar even though risks on the domestic unit from both external and domestic fronts have increased.
After its various corrections since Diwali, the stock market is expected to settle and consolidate in the next few days, with most uncertainties thought to have been priced in. That applies to the telecom scam-related implications, too, as long as its toll does not go beyond ministers and no more bad news comes from European countries. Most players believe there are several good stocks at attractive valuations.
At present, the repo rate acts as the policy rate when liquidity is in deficit mode while reverse repo becomes the operating rate when there liquidity is surplus.
As we say shalom to 2016, the key drivers for the markets in the year ahead have become more obvious, says Neeraj Gambhir, managing director and head of fixed income, India, Nomura. First, there is a surging dollar. Second, rising commodity prices. Then, we have the effects of demonetisation.
Demonetisation will wipe out the likely benefits of a good monsoon this year, says Christopher Wood of CLSA.
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The basis of Ind-Ra's expectation of INR appreciation is based on economic developments in the last one to two months of this fiscal and the likely developments in the remaining months.
Brokerage Edelweiss Securities said if the NDA returns to power with a clear majority in line with exit polls, markets would rejoice the policy continuity.
'India is possibly the most fiscally constrained market in the region.'
Kotak Mahindra Bank was the biggest gainer on both the indices, ending nearly 9 per cent higher following reports that Warren Buffett's Berkshire Hathaway Inc was planning to pick up stake in the private sector lender.
Top gainers of the session included Bajaj Auto, Kotak Bank, M&M, Vedanta, IndusInd Bank, Asian Paints, HDFC Bank, Reliance Industries, HUL, HDFC, ITC, Tata Steel and Tata Motors, rallying up to 5 per cent.
While Governor Das was sanguine on government walking the fiscal prudence path--which was missed three out of the five budgets of the Modi government--Acharya pointed to the fiscal slippages as a worry.
As the Indian equities signed off 2019 on a remarkable note, the m-cap of BSE-listed companies rose by Rs 11,05,363.35 crore to Rs 1,55,53,829.04 crore.
Indian equities are in a multi-year bull story with capex cycle recovery as the main driver.
Analysts expect global markets to remain in consolidation mode with a negative bias over the next six months.
Research shows the US Fed doesn't get its predictions right as often as we would like to believe. With India and China in an upbeat mood, the dark days of last September are slowly fading in memory.
Political risk culminating from elections in the US and Latin America, and evolving right-wing populism in Europe could lead to substantial volatility, say Abheek Barua & Tushar Arora.
India should not be left behind. It should join the seven central banks which are studying feasibility and safeguards necessary to eliminate risks, particularly from hacking, advises former foreign secretary Shyam Saran.
Forecasts of a further rise in bullion prices keep Indians away from selling gold.
Indian markets on Thursday shrugged off any negative impact.
'Demonetisation will push India onto a higher growth path after a temporary dip.'
A fall presents an opportunity to buy rate-sensitive stocks.
Sectorally, metal and banking stocks rallied the most, while FMCG and realty stocks came under selling pressure.
