Mumbai, Aug 28 (IANS): After tanking substantially in the morning trade, a benchmark index of Indian equities markets Wednesday recovered around one percent during afternoon trade and was trading flat at 81.22 points or 0.45 points down.

The recovery was seen after rupee recovered to 68.38 against a dollar at 12.38 p.m.

The benchmark index fell over one-and-a-half percent as the rupee fell to a record low of 68.75 against the dollar during the pre-noon trade.

The 30-scrip sensitive index (Sensex) of the S&P Bombay Stock Exchange (BSE), which opened at 17,851.44 points, was trading at 17886.86 points, down 81.22 points or 0.45 percent from the previous day's close at 17,968.08 points.

The Sensex touched a high of 17887.73 points and a low of 17448.71 points during the early trade.

Heavy selling pressure was observed in banking index (bankex), oil and gas, public sector undertakings (PSUs) and automobile sectors. While some positive buying was observed in IT and technology, media and entertainment (TECK) sectors.

The S&P BSE PSU index plunged 167.91 points, oil and gas index plummeted 192.58 points, bankex dropped 189.08 points and auto index slipped 83.35 points. However, IT index surged 169.98 points and TECK index went up by 51.51 points.

The partially-convertible rupee slumped to a new low of 68.75 against the dollar at the inter-bank foreign exchange market in Mumbai, surpassing the previous low of 66.25 recorded Tuesday.

The sharp volatility in the market comes a day after it tanked around 600 points, amidts heavy selling by foreign institutional investors (FIIs), showing their lack of interest in a weak Indian economy.

The wider 50-scrip Nifty of the National Stock Exchange (NSE) was trading 40.05 points or 0.76 percent down at 5,247.40 points.