The index went below the crucial 50 mark.
Top losers are Sun Pharma, Bajaj Auto, L&T, ITC, Hero Moto.
It is the rupee's biggest single-day gain this year.
U.S. economic growth braked more sharply than expected in the first quarter.
The BSE Mid-Cap index was currently down 1.25%
Sensex closed 63.82 points higher at 26,851.05 in Muhurat trading; Nifty rises 18.65 points to end at 8,014.55.
Manish Pandey and Yusuf Pathan hit half-centuries as Kolkata Knight Riders edged past Delhi Daredevils by four wickets, in the Indian Premier League, in Delhi, on Monday.
Markets shrugged off RBI's neutral stance on key policy rates.
Markets in countries whose economic fortunes were closely linked to China's growth tumbled.
Growth in the eight core sectors jumped to 8.5% in April, due to a sharp pick-up in refinery products and a commensurate rise in electricity generation.
Custodian banks are selling dollars for their foreign fund clients.
Markets recorded their biggest single-day fall since August 1 amid growth concerns in the euro zone.
Sensex ended at 26,272 up 125 points and Nifty ended at 7,831 up by 35 points.
The rupee tumbled past 63.00 to the dollar, down about 2 per cent on the day and breaching the previous low of 62.03 hit on Friday despite a spate of measures in recent weeks by the central bank and government to defend it.
Markets in green tracking firm global cues.
The 30-share Sensex ended down 30.30 points at 28,161.72 and the 50-share Nifty dipped 7.95 points at 8,543.