The NSE Nifty cracked below the 10,800-mark to hit a low of 10,753.05 intra-day, before closing at 10,762.45 with a loss of 59.40 points, or 0.55 per cent.
Petrol price was cut by Rs 2.43 per litre and diesel by Rs 3.60 a litre, the third reduction in rates this month.
Pharma was the top losing index amid worries about their earnings outlook with Lupin down over 4%
The rupee had gained five paise to close at 63.25 against the dollar in on Monday's trade on fresh selling of the US currency by exporters amid bullish stocks.
Rupee gained on increased selling of the US currency by banks and exporters
The rupee had ended almost flat at 61.41 against the Greenback in the previous session on Wednesday on alternate bouts of buying and selling.
The session was marked by volatility and stock-specific action, even as the overall sentiment remains risk-averse, brokers said.
The unearthing of capital flight of "black" money Indians have allegedly stashed away in Swiss banks could add $30 billion to the country's forex reserves, says a Bank of America Merrill Lynch report.
The rupee recovered marginally at close against the dollar.
Both the indices ended at their highest levels since February 1.
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.
Despite the possibility of the economy bottoming out, the investment cycle could remain weak for another couple of years and earnings downgrades should continue.
Forex dealers said increased selling of the American currency by exporters and banks supported the rupee but a lower opening of the domestic equity market and dollar's rise against other currencies overseas restricted the gains.
The next 12 months will be quite challenging marked by uncertain political events and evolving macroeconomic scenario
The Indian unit opened sharply higher at 64.80 as against Wednesday's closing level of 65.12.
Rupee was impacted by renewed dollar demand from banks and importers amid sharp falls in equity market
Traders expect the rupee to remain wedged between the 59.60 and 60.50 levels in the absence of any key triggers in the near-term.
'Demonetisation will push India onto a higher growth path after a temporary dip.'
Dollar sales by exporters and firm local equities also supported the local currency.
The broader NSE Nifty too dived by 101.65 points, or 0.97 per cent, to close at 10,350.15.
The rupee ended higher for the second consecutive week.
The rupee is currently hovering around Rs 65/USD at 2-year lows.
Investors are trying to push ahead with dollar purchases, emboldened by improving market sentiments
The primary aim for the Rohit Sharma-led India against minnows Hong Kong would be to get their combination right before the big game against Pakistan on Wednesday.
The price reduction will be effective midnight tonight, announced Indian Oil Corp
Now candidates can appear for NEET any number of times.
The rupee had lost 10 paise to close at 21-month low of 64.26 against the greenback in Tuesday's trade.
The RBI fixed the reference rate for the dollar at 64.1505 and for the euro at 72.2720.
For the first time in India, Swiss Learning, an educational body managed by the Heads of Swiss Educational Institutes, has brought representatives from various schools from the country to meet stakeholders, Indian schools and parents of potential students.
Weakness in the dollar against some currencies supported the rupee.
Increased demand for the dollar from importers affected the value of the rupee
Foreign investors have bought nearly $5 billion worth of debt so far in 2014.
Upstream firms have a tremendous financial pressure due to selling crude at subsidised rates to oil marketing firms.
The rupee has dropped by 21 paise or 0.32 per cent in the last two sessions.
Forex dealers said dollar's weakness against other currencies overseas supported the rupee.
The rupee on Tuesday weakened by 15 paise to close at 63.30 against the US currency
The rupee extended gains for the second straight session against the US currency by firming up 21 paise to close at 64.82 a dollar.
The rupee was largely rangebound for most of the trading day in the absence of any major cues ahead of the Reserve Bank of India's rate-setting meeting next week.
Fag-end selling of dollars by banks and exporters
Fresh selling of dollars by banks and exporters on the back of good foreign capital inflows helped the rupee
