The big domestic trigger coming up next is Union budget, which is due on February 1.
The broader 51-scrip Nifty at the National Stock Exchange (NSE) opened at 8,499.45 points after closing at 8,475.80 points.
Strong demand from institutional buyers saw bids worth over Rs 580 crore coming in on the first day of government's 10 percent stake sale in manganese miner MOIL.
A set of strong corporate earnings numbers gave the market enough comfort as the Sensex soared by over 258 points today to end at 27,376, a 2-month high, with covering of short positions ahead of derivatives expiry making the job easier.
Section 54 EC of Income Tax Act, 1961 provides an option to save tax on capital gain arising from transfer of long-term capital asset subject to certain conditions.
BSE's initial public offer -- the first by a domestic stock exchange in India -- to raise up to Rs 1,243 crore was fully subscribed by the afternoon trade today, the second day of the offer.
The 2-day offer for sale (OFS) of the government's 10 percent stake in MOIL at a floor price of Rs 365 opened for non-retail investors today.
Expecting 8-10 percent return from markets this year, ace banker Uday Kotak has said India is also ready to explore various new products while there is appetite for some good "high-quality" public offers as well.
Investors went on bargain hunting Monday that helped the benchmark Sensex stage a modest recovery at 27,117 at the close as hopes grew that the upcoming Budget on February 1 would contain steps that can ease the impact of the cash ban.
RBI Governor Urjit Patel has reallocated portfolios of Deputy Governors following assumption of charge by Viral V Acharya.
The benchmark Sensex fell by about 71 points to slip below the key 27,000-mark in the opening trade today, on sustained foreign fund outflows amid weak Asian cues as investors await US President Donald Trump's economic plan details.
Investors will keenly watch the developments in the US as policies under President Donald Trump are likely to drive domestic market sentiments in this truncated trading week along with corporate earnings and budget expectations, feel experts.
The year gone by turned out to be very profitable for Indian bonds which emerged as the best performers in Asia in 2016, says a Nomura report.
Five of the top-10 most valued Indian companies suffered a cumulative loss of Rs 39,593.68 crore in market valuation last week, with RIL taking the steepest hit.
BSE Ltd is set to opens its Initial Public Offer on Monday which will be on sale up till January 25.
The second tranche sale of government's exchange traded fund (ETF) of top 10 state-owned companies saw bids worth Rs 12,000 crore from investors, which is twice the amount sought to be raised.
Markets regulator Sebi plans to further tighten the regulations governing participatory notes amid persisting concerns that this route is being used for illicit fund flows.
Banking stocks felt the pinch, and global leads failed to pick up either.
The Sensex shed almost 81 points to 27,227.78 in early trade as participants cut down bets amid lacklustre Asian cues and nervous investors await Donald Trump's takeover as US President later today.
Bombay Mercantile Co-operative Bank was imposed with a penalty of Rs 75 lakh by the Reserve Bank of India on Thursday for violations of norms related to KYC and anti-money laundering.