Among the gainers, Sun Pharma topped by rising 3.03 per cent as the weak rupee tempted buyers to accumulate shares of pharma exporters.
Every dollar increase in crude oil price will add Rs 4,000 crore to the overall underrecovery.
The broader NSE Nifty moved between 10,705 and 10,785.55, before ending 25.15 points, or 0.23 per cent down at 10,716.55.
The falls meant that both crude futures were at their lowest levels since mid-April
Lacklustre domestic equities alongside ongoing FCNR redemptions added pressure on the local currency
Benchmark Brent oil futures prices more than halved between June 2014 and January 2015.
The rupee has been under immense pressure due to a host of reasons including soaring crude oil prices, sustained foreign fund outflows and widening current account deficit.
The BSE gauge Sensex fell 73.88 points to 35,548.26 and the NSE Nifty slid 17.85 points to 10,799.85, taking cues from tumbling global shares.
Reacting to market specific developments, the domestic unit touched a low of 66.74 in intra-day trade before concluding at 66.65.
Stock specific action is seen with some of the prominent companies posting their quarterly numbers.
The NSE Nifty too recovered over 100 points, or 0.96 per cent, to end at 10,576.85.
The broader Nifty too fell for the second straight session and closed with a loss of over 62 points, or 0.54 per cent, at 11,520.30, after hovering between 11,496.85 and 11,602.55.
The benchmark Sensex on Thursday slipped below the 25,000-level by tanking about 555 points.
Diesel likely to get cheaper in New Delhi
The rupee had ended five paise lower at 61.92 on Tuesday.
Most Asian currency and equity markets too suffered steep losses due to US rate hike fears.
Despite the recovery to above $40 levels after hitting $28-29 in Jan, worries of over-supply in the face of weak demand remain.
Oil price have started rising as President Barack Obama's efforts to win backing for a military strike against Syria cleared its first hurdle.
After a sharp sell-off in the past two months, overseas investors were once again seen turning bullish on Indian equities. FIIs bought shares worth Rs 63.5 billion in the past five sessions, their highest weekly investment tally in many months.
Notable losers were ONGC, Axis Bank, ITC, SBI, ICICI Bank, NTPC, Hero Motocorp, Sun Pharma and Bharti Airtel who fell by up to 2.80 per cent.
The rupee had revisited the near 2-month low of 60.55 per dollar earlier in the session.
Cascading effect of rising raw materials will result in inflation, high rates, slow capex
The rupee ended marginally lower by three paise at 66.36 against the US dollar.
The benchmark Indian crude oil basket is now estimated to average $77.88 a barrel for FY19, compared to the government's earlier estimate of $65 a barrel for the year and $56.39 for FY18
The Sensex has slid 18.5 per cent from its January 2015 peak.
It's time government used oil windfall wisely.
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.
Sensex, Nifty have lost about 6%, against 0.5-5% decline in other key Asian indices.
Falling jet fuel prices, stable rupee signal lower losses
Both benchmark indices were driven by strong gains in IT, teck, oil and gas, pharma and banking shares amid earnings optimism.
RIL might see its September quarter's profit between Rs 5,600 crore and Rs 5,670 crore.
Fresh dollar demand from banks and importers amidst volatile equities triggered the fall
Oil subsidies to fall 44% in FY15.
While far from being a currency war, India does not have much of an option but to depreciate to accommodate its exports at a time when China shows its intent to let its currency depreciate.
Making sense of the international crude market is incredibly hard.
'A positive oil shock has a detrimental effect on growth and activity.'
The BSE benchmark Sensex surged about 241 points to end at 35,165.48 and the NSE Nifty gained 84 points to close at 10,688.65.
Global supply is staying in excess of demand.
The immediate concern for the rupee is the sharp spike in oil prices
Oil has slumped from above $115 in June 2014 as shale oil from the United States has flooded the market
