The rupee also took a sharp plunge of 96 paise (intra-day) against the US dollar to crash below the 68-level, but RBI intervention to infuse liquidity helped the local currency recoup some early losses.
The benchmark BSE Sensex recovered nearly 48 points in early cautious trade Thursday as participants widened their bets in select stocks, tracking a slightly better trend in other Asian markets just hours before the start of Britain's referendum vote.
Continuing its slide for the third straight day, the rupee depreciated further by 11 paise to 67.59 against the US dollar in early trade today on sustained demand for the American currency from importers and banks.
Recovering from its early morning plunge, BSE Sensex Monday soared 241 points as the government unleashed a new wave of FDI reforms and Brexit worries eased while hectic buying by institutions and talking-up by influential marketmen helped counter Rexit jitters.
Having faith in India's growth story amid good monsoon prospects and GDP growth, Stock markets took Raghuram Rajan's decision for 'no second term' in strides and reversed early losses. Sensex is trading up 74 points at 26,699; while Nifty recovered 19 points and trading at 8189 points.
BSE Sensex staged a sharp recovery of 189 points to 26,714.26 in early trade today as fresh buying by investors led to widespread gains, driven by lower current account deficit and trade gap for last fiscal.
After a day's breather, the Sensex resumed its downward spiral by taking a hit of 201 points to 26,525.46, tracking a global sell-off as Bank of Japan refrained from adding more stimulus and the Fed lowered its growth forecast for the US economy.
The BSE benchmark Sensex plunged over 300 points and the NSE Nifty dipped below the crucial 8,100-mark in early trade Thursday due to profit-booking by investors amid concerns about Britain's upcoming vote on whether to exit the European Union.
Recent market rally may have resulted in upward outlook revision by brokerages, but HSBC feels Indian equities are overpriced and Sensex is in for a correction, which may slump to 26,000 by the end of 2016.