After plunging 519 points in early trade, the Sensex on Wednesday made a smart recovery to close 28.07 points higher at 17,996.15 supported by strength in IT, metal and pharma stocks despite the rupee hitting new all-time low.

Surging oil prices on back of heightened geopolitical tension over possible US-led coalition attack on Syria and a sinking rupee cast shadow on the stock market with the Sensex plummeting to 17,448.71 in the early stages of trade.

However, a wave of value-buying led by institutional investors like LIC and mutual funds helped stock markets recover even as FIIs dumped bluechip stocks, brokers said.

Stocks also recovered as investors covered their pending long positions created in the recent bear-run ahead of the monthly derivatives contract expiry on Thursday, they added.

The Sensex jumped to 18,101.84 and finally settled the day at 17,996.15 — up 28.07 points or 0.16 per cent.

On Tuesday, it had crashed 590 points to end below the 18,000 mark after a gap of one week.

The NSE index Nifty finished 2.56 points, or 0.05 per cent lower at 5,285, after touching day’s low of 5,118.85. The SX40, the flagship index of MCX-SX, ended flat at 10,630.05.

Continuing its free-fall, the rupee sank to 68.75 on heightened capital outflow concerns and worries that fiscal burden will increase due to food security programme.

It later pared some losses to trade at 67.9 when stock markets closed.