At the forex market, the rupee opened sharply lower at 70.06 and fell further to the day's low of 70.27 as crude oil prices breached the $75 per barrel mark for the first time in 2019.

The domestic currency settled lower by 39 paise or 0.56 per cent at 70.25 per dollar, the lowest closing level since March 6, according to PTI.

According to VK Sharma, head, PCG & Capital Markets Strategy, HDFC Securities, rising crude and dollar index weighed on the rupee.

The dollar index, which gauges the greenback's strength against a basket of six currencies, was up by 0.08 per cent to 98.25.

"Stronger crude oil prices, weakness in Asian currencies also weighed on rupee," said Mr Sharma.

Global benchmark Brent breached the $75 per barrel level for the first time in 2019 following stricter US sanctions on Iran oil.

A 10 per cent spike in crude prices can result in a 0.40 per cent widening of the CAD, which could result into a 3-4 per cent depreciation in the rupee and also push up inflation by 0.24 per cent, Mr Sharma pointed out.

Saudi Arabia's comments that it sees no immediate need for intervention in the oil market fuelled the rally even as the US data showed larger-than-expected increase in oil stockpiles.

The BSE Sensex closed at 38,730.86, down by 323.82 points, or 0.83 per cent and the NSE Nifty dropped 84.35 points to settle at 11,641.80.