The foreign exchange reserves rose by USD 1.594 billion to touch a life-time high of Rs 372.73 billion in the week to April 28, supported by increase in the foreign currency assets, the Reserve Bank said.
The stock declined by 3.84 percent to close at Rs 419.75 on BSE. Intra-day, it dipped 4.22 percent to Rs 418.05.
Equities sank the most in six weeks as the Sensex crashed 267 points to close below 30,000 while the Nifty retreated from a life high amid a lower opening in Europe ahead of key US jobs data and slide in crude prices.
The domestic currency has been Asia's best performer this year and its rising clout against the US dollar has been aided by a hands-off approach by the RBI.
The BSE benchmark cracked below the 30,000-level by dropping 133 points in early trade on Friday on emergence of profit-booking after yesterday's strong rally.
Sentiment also remained upbeat following strong earnings by the country's biggest private lender ICICI Bank and the US Federal Reserve's decision to keep its policy rate unchanged.
Bank stocks were in the limelight today, surging by up to 9 percent on the government's decision to put in place a mechanism to effectively deal with the problem of mounting bad loans in the sector.
The domestic equities also got a boost after the US Federal Reserve kept its policy rate unchanged in its two-day policy review.
Registering losses for the second day, Lupin on Wednesday fell by 3 percent on US health regulator's observations for its Goa plant.
Market benchmark Sensex erased its early gains to end marginally lower at 29,894.80 Wednesday amid a sell-off in pharma and metal counters.
Stock brokers, merchant bankers and other market intermediaries can now register online, with regulator Sebi operationalising a portal for the purpose.
In today's early trade, the NSE Nifty too advanced by 32.50 points, or 0.34 per cent, to 9,346.30.
All the sectoral indices led by consumer durables, PSU, metal, auto, bank and IT were trading in the positive zone, rising by up to 0.96 percent.
Foreign investors poured in a whopping USD 3.5 billion in the Indian capital markets in April as Sebi raised investment limit for FPIs in government debt coupled with strong global cues.
Seven of the 10 most valued listed companies together added Rs 49,642.58 crore in market valuation last week, with HDFC Bank stealing the show with the maximum gain.
Regulator Irdai has asked the life insurance behemoth LIC to prepare a roadmap to pare its stake to 15 per cent in firms where it breaches this ceiling, but has stopped short of setting a time-frame for the same.
Halting a two straight weeks of downfall, the rupee made a strong comback against the US currency and ended at a near 21-month high of 64.24 - surging by a good 37 paise on heavy dollar selling by exporters and corporates.
Markets regulator Sebi has barred its employees from participating in auction conducted by it for sale of movable and immovable properties of defaulters following recovery proceedings.
The Nifty started the week at 9135.35 and added 2.02 percent by the end of the week.
Sharply critical of the existing corporate governance practices, Sebi chief Ajay Tyagi today said "independent directors are not independent" and audit committees are not working but admitted he does not have a solution to fix the lacunae.