The rupee is likely to recover some of its recent losses as the dollar dropped to a seven-month low against the euro and the yen amid growing expectations that the Federal Reserve may be wary of raising interest rates this year. The market breadth was turned negative from positive as 1,336 shares fell and 1,333 rose while 96 were unchanged on BSE.

According to the provisional data released by the stock exchanges, DII purchased shares worth Rs 2,577.06 crore even as FPIs continued to trim exposure to Indian markets.

On Thursday, the key benchmark indices soared over 2 per cent on the back of strong global markets amid F&O expiry.

“Buoyant by firm global and domestic cues, markets made a robust start on Thursday and inched further northward as the day progressed”, said Jayant Manglik, President, Retail Distribution, Religare Securities Ltd.

The Nifty of National of Stock Exchange regained the 8,000-mark by rising 113 points.

In overseas markets, Asian stocks were trading higher in early trade.

Attributing the stock market crash to global turbulence, finance minister Arun Jaitley on Monday said the government and RBI were watching the situation and hoped that things will stabilise once the transient impact is over.

The major Sensex losers were: BHEL, down 3.54% at Rs.231.70; Bajaj Auto, down 2.44% at Rs.2,189.30; Tata Motors, down 0.62% at Rs.334.70; NTPC, down 0.50% at Rs.119.15; and Hero MotoCorp, down 0.47% at Rs.2,380.70.

However, market experts advise investors remain caution and wait for right time to buy stocks.

The Sensex on Monday closed for the day at 25,741.56, down 1,624.51 points – marking the biggest ever mauling it has received historically.

Most of heavyweights raised on value buying, like HDFC gained 8.4 per cent after declining about 19 per cent in the last one month.

Trading in a wide range of 826.35 points during the day, the index managed to reclaim the 26,000-level after falling to its lowest since August 8, 2014, clocked in previous trading.

In Asia, Chinese markets also bounced back sharply with Shanghai Composite ending 5.3 per cent higher and Hang Seng gaining 3.6 percent at close, while Japan’s Nikkei rose 1.1 percent, extending gains for second straight session.

The Sensex touched a high of 26,124.83 points and a low of 25,298.42 points during intra-day trade.