Heavyweights such as Coal India, L&T and SBI ran up losses, taking cues from overseas markets.
The rupee on Tuesday tumbled by 32 paise to close at 64.17 on fresh dollar demand from importers.
'If such inflows materialise, what will be the effect on the rupee's value -- and therefore on exports growth, the only sustainable path to recovery?', asks Mihir S Sharma.
Falling for the third day, Indian rupee on Wednesday weakened by 14 paise to close at over one-week low of 62.02 against the Greenback.
The 30-share Sensex also hit its one-year low of 22,494.61 on February 29 this year.
On Friday, the rupee fell to its 26-month low at 66.89.
The US dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was up by 0.31 per cent at 97.52.
Strong rebound in local equities restricted the rupee's fall.
The fall was led by L&T, IndusInd Bank, PowerGrid, NTPC, TCS, ICICI Bank, Axis Bank, Hero MotoCorp, Bharti Airtel and SBI, declining up to 2.64 per cent.
NSE Nifty, after shuttling between 10,809.60 and 10,725.90, finished 30.95 points, or 0.29 per cent lower at 10,741.10.
Healthcare, auto and financial stocks lagged.
The rupee had eased by 2 paise to close at fresh 2-month low of 62.78.
The NSE Nifty ended 89.40 points, or 0.83 per cent, lower at 10,710.45.
The 50-share NSE Nifty ended flat, up 5.80 points, or 0.06 per cent, at 10,308.95.
The Nifty closed at 10,335.30, down 28.35 points, or 0.27 per cent.
Major losers include Lupin 1.96 per cent, along with Tata Motors, Coal India and Sun Pharma.
'If credit is not available, people will postpone buying. That's what has happened.'
Huge inflow thanks to low inflation levels and RBI rate cut
Bearish dollar overseas also supported the rupee
The rupee settled at 61.71. In straight three sessions, the currency has shot up 51 paise or by 0.82 per cent.
Among Sensex constituents, HCL Tech suffered the most by diving 2.26 per cent, followed by HDFC shedding 2.10 per cent.
Extending losses for the fourth straight session, Indian rupee on Monday declined by ten paise to log over 13-month closing low of 63.67.
'... Whether an incumbent is voted back or a coalition forms a new government except for a temporary disruption for a few weeks.'
The 50-share NSE Nifty, however, was little changed, ending 1.20 points down
The rupee closed marginally stronger against the dollar on Wednesday.
Rupee closed at 61.86 against the dollar on Tuesday.
Various global and domestic factors had a sizable impact on the performance of the Indian markets
ICICI Bank was the top gainer in the Sensex pack, surging 4.64 per cent, followed by Axis Bank at 3.86 per cent and SBI 2.53 per cent.
In the Sensex pack, ICICI Bank emerged as the top gainer by rising 0.97 per cent, while Tata Steel advanced 0.92 per cent.
For the week, the Sensex recorded a fall of 371 points, or 1.10 per cent, and the NSE Nifty 130.75 points, or 1.25 per cent.
The 50-share Nifty bounced 83.35 points, or 0.86 per cent, to 9,794.15 at close.
For the second straight week, the Sensex rose, notching up a significant gain of 528.34 points, or 1.59 per cent. The Nifty was up 129.45 points, or 1.25 per cent, during the week.
If the rupee falls further, it would negatively impact the dollar-based returns of foreign investors, and could influence foreign flows into India.
In the case of Indian equities specifically, all eyes will now be on the next RBI monetary policy scheduled for September 29.
Fresh dollar selling by exporters after USD was trading weak by 0.24 per cent against its major global rivals also aided the rupee recovery.
On Wednesday, the rupee had dropped by 26 paise.
The 50-share NSE Nifty stayed in the positive zone and retook the 9,900-mark to hit a high of 9,905.05 as buying paced up towards the fag end. It settled higher by 72.45 points, or 0.74 per cent, at 9,899.60.
The rupee closes 12 paise down against the dollar.
Risk sentiment received a boost after eight core sectors grew to a five-month high of 4.9 per cent in August
Besides higher tax outgo, P-note issuers are worried about operational difficulties
© 2026 Rediff.com - Investor Information - Advertise with us - Disclaimer - Privacy Policy - Sitemap - Feedback - About us - Terms of use - Grievances