Ben Stokes was unrepentant after England’s historic, nail-biting one-run defeat by New Zealand in Wellington, insisting he had no regrets about the follow-on and stating he will plough on to the Indian Premier League despite a longstanding knee injury.

The all-rounder became only the fourth Test captain after the Australians John Blackham (1894), Kim Hughes (1981) and Steve Waugh (2001) to stick his opponents back in after their first innings and end up on the losing side. England, set 258 to win, were bowled out for 256 on the final day to see the series drawn at one apiece.

Related: England fall to one-run defeat in dramatic finale against New Zealand

A Kane Williamson masterclass turned the tables in the third innings before Neil Wagner completed figures of four for 62 by removing England’s No 11, Jimmy Anderson. Stokes, having begun his captaincy last year with the stated aim of making Test cricket entertaining, was philosophical.

“Even though we came out on the wrong side of it, you can’t help but feel blessed that we’ve managed to be a part of that incredible game,” said Stokes, he and head coach Brendon McCullum having suffered just their second defeat as a leadership duo.

On the follow-on, enforced with a 226-run lead, Stokes added: “I knew that New Zealand would have to play pretty much the perfect game to win this game.

“The conditions we found ourselves in on that day – it was overcast, the wicket was doing plenty. The way we ran through the New Zealand top order in the previous three innings, I thought it was the right decision.”

Stokes has himself become a point of discussion ahead to the summer’s Ashes series, having laboured through this second Test with the knee injury that continues to limit him. He bowled just two overs in the match – and only nine in the two-match series – and was visibly struggling as he and Joe Root (95) nearly saw England home.

Despite this, Stokes is planning to forge ahead with his £1.6m contract to play for Chennai Super Kings in the IPL that starts on 31 March and stressed that the franchise, coached by New Zealander Stephen Fleming, a close friend of McCullum, will manage his workload.

Declining to make the precise diagnosis public, Stokes said: “Don’t worry, I’m going to the IPL. I’ve had conversations with Flem and he’s fully aware of the situation with my body at the moment. It’s a week-by-week case at the moment.

“I’m not going to lie, it’s incredibly frustrating knowing something has been holding me back from performing as I’d like to. I’ve been working hard with the physios and the medics trying to get myself to a place where I can fulfil my role as I have done for the last 10 years.”

Speaking to BBC Sport and BT Sport after the match, McCullum added: “He’s not moving that well at the moment but the skipper writes his own scripts and he doesn’t get a better stage to write one than the Ashes. I’m sure he’ll be sweet.

“He’s a tough bloke. He’ll find a way to get through and I know he’s determined to lead this team to Ashes glory as well. We look forward to it.”

While England missed out on the chance to win every Test of their winter for the first time in 124 years, Tim Southee was able to reflect on his first victory since becoming New Zealand captain last December.

Southee, whose first-innings 73 took on greater significance as the match wore on, said: “It felt calm out there. It’s hard not to get caught up in the emotion. It’s just great for Test cricket.

“It’s hard to go past being only the fourth team to win after being asked to follow on. It’s a Test match that will be talked about for a long time.”