The Sensex shed 166.54 points or 0.45 per cent to 37104.28, while Nifty declined 54.65 points or 0.50 per cent to 10981.05.
Volatility hits IPOs & QIPs, but OFS value jumps
Easing crude oil prices and fresh foreign capital inflows provided further support, forex traders said.
After swinging 386 points during the day, the 30-share index settled 166.54 points, or 0.45 per cent, lower at 37,104.28.
Gold is trading at Rs 38,775 per 10 gram at the bullion market here on a stronger rupee against the dollar.
Crude oil contracts for most-traded September delivery traded lower by Rs 7, or 0.17 per cent, at Rs 4,000 per barrel.
At the interbank foreign exchange the rupee opened at 71.46, then gained further ground and touched a high of 71.30.
After touching a high of 37,421.13, the 30-share index was trading 129.68 points, or 0.35 per cent, higher at 37,400.50.
The Sensex closed 125 points higher to settle at 37271 while NSE Nifty gained 33 points to close above the 11000-mark.
Forex traders said the uptick in domestic stocks enthused investors, following which the domestic unit gained strength.