The key domestic indices recovered from early losses on Wednesday, with the S&P BSE Sensex reclaiming the 34,000-mark even as the rupee slipped close to 74 per dollar.
The weakness in the domestic currency was in line with almost all major currencies in the emerging market vis-a-vis the US dollar. The Indian rupee was trading around Rs 73.99 a dollar from its previous close of 73.68. The Chinese yuan was also hit hard.
Drawing a parallel between the currency fluctuations, Anuj Gupta, Deputy Vice President Angel Brooking, told IANS: "The dollar is at a 16-month high as the bond yields are gaining strength.
"The markets are fluctuating between the negative and positive territory but the underlying tone is negative and is expected to remain so till the elections."
At 1.30 p.m., the Sensex traded 215.07 points up at 34,106.20. It opened at 33,963.09 points from its previous close of 33,891.13.
It swung over 500 points touching an intra-day high of 34,115.22 points and a low of 33,587.24.
The NSE Nifty50 traded at 10,267.45 points during the afternoon trade session, up 69.05 points and 0.68 per cent.
(With inputs from agencies.)