Data showing foreign institutional investors have slowed their purchases in domestic shares further added to the weak sentiment.
The problems are being compounded by perceptions that India is ill suited to defend the currency in the near-term.
Several brokerages lifted their outlooks for the BSE Sensex and companies were queuing to ride the wave of political euphoria
Credit Suisse said $5.6 may work for Reliance Industries' R-Series gas field in the KG-D6 block but the economics for its satellite fields and NEC-25 block are uncertain.
The Reserve Bank of India late on Wednesday unveiled rules to restrict how much its citizens and companies can invest abroad and announced additional curbs on gold imports.
Election results, diesel & gas pricing moves, labour law changes - all stoke anticipation of more cheer ahead.