Indian markets ended the session marginally in the green amid weak global cues.
After declining over 500 points in the early trade, the BSE benchmark Sensex ended the session up 28.07 points (0.16 per cent) at 17,996.15.
Similarly, 50-share NSE index Nifty, which plunged over 140 points, closed down 2.45 points (0.05 per cent) at 5,285.00.
The rupee recovered from its historic low of 68.75 in the early trade on mild dollar selling by banks and exporters. At 3.55 p.m., the rupee was trading weak at 68.07 against the dollar.
Life Insurance Corporation was seen buying shares, two dealers who handle trades on behalf of the country's largest state-run insurer were quoted as saying by Reuters.
FIIs resorted to heavy selling due to uncertain economic conditions and volatile global markets.
Market sentiment was hit on fears of burgeoning fiscal deficit due to the Food Security Bill and Syria imbroglio.
Speculation that the US is preparing military action against Syria and Britain and France are supporting the move is raising geo-political tensions across the globe.
Among BSE sectoral indices, realty, PSU and banking indices plunged the most by 2.97 per cent, 2.22 per cent, 1.4 per cent and 1.28 per cent, respectively.
On the other hand, IT, metal, TECk and healthcare indices remained investors' favourite and were up 2.68 per cent, 1.88 per cent, 1.79 per cent and 1.16 per cent, respectively.
Among 30-share Sensex, Jindal Steel (3.69 per cent), TCS (3.68 per cent), Wipro (3.63 per cent), Tata Power (3.29 per cent) and Hindalco (2.92 per cent) were the top five gainers, while the top five losers were ONGC (5.98 per cent), HDFC (4.77 per cent), GAIL (3.45 per cent), Coal India (2.29 per cent) and Bharti Airtel (2.21 per cent).
Jitters over a possible US-led military strike against the Syrian Government knocked Asian equities to a seven-week low on Wednesday and pushed oil prices and safe-haven gold to multi-month highs.
Japan's Nikkei plunge 203.91 points or 1.51 per cent to 13,338.50, Hong Kong's Hang Seng plummeted 330.44 points or 1.51 per cent to 21,544.30 and Australia's S&P/ASX 200 shed 54.05 points or 1.05 per cent to 5,087.16.
European stocks fell, extending the biggest drop in nine weeks, while oil rose to a more than two-year high.
Stoxx 50 was down 10.09 points or 0.37 per cent at 2,739.18, FTSE 100 fell 42.19 points or 0.65 per cent to 6,403.07 and DAX declined 80.38 points or 0.98 per cent to 8,162.18.