Forex dealers said a weakening dollar against other currencies overseas and a higher opening in the domestic equity market kept the rupee going.
The recent surge in the stock market, experts say, has come on the back of a number of domestic factors such as better-than-expected earnings, expectations of a good monsoon and a rise in new orders, among others.
Sentiment remained sunny as oil advanced to USD 50 a barrel for the first time this year as US industry data showed a decline in stockpile.
Buying activity gathered momentum as global equities rallied after investors also adjusted to the prospect of a US rate hike in the near future amid a surge in home sales.
SEBI announced, it will put in place stringent norms for high frequency trades along with higher penalties for misuse and initiate strong action against auditors for lapses.
Forex dealers said weakness in the dollar against other currencies overseas also supported the rupee.
A higher opening in Europe and a mixed trend in Asia offered some respite.
The BSE Sensex resumed higher, but profit booking later on dragged it down to the negative zone, which ended lower by 71.54 points, or 0.28 per cent, at 25,230.36.
Forex dealers said weakness in the dollar against other currencies overseas supported the rupee. Further, a higher opening in the domestic equity market added to the upside.
On a weekly basis, both the indices - Sensex and Nifty - fell 187.67 points or 0.73 per cent and 65.20 points or 0.83 per cent, respectively.
The Sebi board took the decision after concerns were raised by the Supreme Court-appointed Special Investigation Team (SIT) on black money.
From Sensex, Adani Ports and Special Economic Zone emerged as the biggest loser by plunging 6.14 per cent to Rs 171.85 after Moody's revised the outlook to 'negative' from 'stable'.
The 30-share barometer declined 210.46 points, or 0.81 per cent, to 25,563.15, with auto, banking, IT, FMCG, metal and realty sector stocks leading the fall.
Benchmark BSE Sensex tumbled by 210.46 points or 0.81 per cent to 25,563.15 in early trade.
Sebi plans to approach the government seeking amendments to securities law for more clarity on adjudicating officers' discretionary powers in determining the quantum of monetary penalty in cases of violations.
A win in Assam would testify to the continuing appeal of BJP in results that are due on Thursday.
All the sectoral indices, led by oil & gas, realty and IT, were trading in the positive terrain with gains up to 1.42 per cent.
On Monday, the rupee had lost three paise to hit two-month closing low of 66.80.
The rupee on Monday, continued its falling streak against the US currency for the third day, slipping by another three paise to hit 2-month closing low of 66.80 on persistent dollar demand.
Global factors that are likely to affect Indian equity markets include -- Chinese equities and the fact that BoJ may be nearing the limits of monetary policy.
The bank had reported a loss of Rs 3,342.04 crore in the preceding December quarter, which is the highest quarterly loss by a bank.
The 30-share index rose by 117.35 points or 0.46 per cent to 25,606.92 with sectoral indices led by realty, healthcare, IT, auto and capital goods, rising by up to 0.80 per cent.
The benchmark BSE Sensex recovered by 117.35 points, or 0.46 per cent, to 25,606.92 in early trade.
A weak trend on other Asian bourses, tracking overnight losses in the US and European markets, also weighed on the trading sentiment.
On Thursday, the domestic unit had lost 6 paise to close at 66.62 due to higher greenback in the overseas market.
Major exchanges in the country include BSE and NSE, both of which have their own clearing corporations.
The rupee trimmed its earlier losses against the US dollar but was still quoted lower by one paise to 66.57.
Foreign fund outflows amid increased demand for the American currency from importers.
Trading sentiment was also positive ahead of the release of key macroeconomic data -- industrial production (IIP) for March and consumer price index (CPI) for April.
The benchmark BSE Sensex tanked 337.49 points, or 1.31 per cent, to 25,435.04 in early trade today.
The April figures are of second lowest value of corporate debt transactions recorded for a month after Rs 82,142.24 crore reported in February.
The stock was the top gainer on both Sensex and Nifty during the morning trade.
At NSE, the stock debuted at Rs 231.90, rising by 10.42 per cent.
Firm trend in regional markets led by Japan after yen sank to its lowest-level in two weeks against the dollar and better inflation data from China also helped. Europe was higher on solid corporate earnings.
BSE Sensex fell by 34.71 points, or 0.13 per cent, to 25,654.15 in early trade.
Weaker-than-expected US jobs report also helped domestic stock markets.