The benchmark BSE Sensex climbed 109 points in early trade Tuesday after investors buying gained steam amid mixed Asian cues.
The RBI's proposal to open up "Islamic window" in conventional banks will lead to trillions of dollars from Gulf nations getting invested in India, said an organisation pushing for Islamic financial banking.
Government is considering a proposal to raise Market Stabilisation Scheme (MSS) ceiling beyond the existing Rs 30,000 crore to mop up extra liquidity from the system in view of demonetisation.
The benchmark BSE Sensex recovered form early losses, trading higher by 32 points in late morning deals, while the Nifty hovered around 8,100-level.
Indian bonds and banking shares slumped on Monday after the central bank ordered banks to temporarily boost cash deposits with it in a bid to absorb excess liquidity generated by a government ban on larger notes.
The BSE benchmark Sensex fell over 133 points and the Nifty slipped below the 8,100-mark in early trade today as banking stocks led fall on fresh selling amid mixed Asian cues.
In order to decongest storage facility in wake of increasing deposits post note ban move by the central government, Reserve Bank of India (RBI) on Saturday allowed RBI on Saturday allowed lenders to park such currencies at currency chests at the district level.
Foreign investors have pulled out close to USD 5 billion from the capital markets in November so far amid concerns over the impact of demonetisation coupled with fears of rate hike by the US Federal Reserve.
The rupee is expected to see further depreciation in the coming months and may breach the 70-level by December and touch 72.50 by the end of 2017, says a Deutsche Bank research report.
Post demonetisation move by the government, deposits in Jan Dhan accounts have soared sharply by around Rs 27,200 crore in just 14 days.
In order to absorb the surge in liquidity in banking system following demonetisation of high value notes, the Reserve Bank introduced an incremental Cash Reserve Ratio (CRR) of 100 per cent for the fortnight beginning Saturday.
After four weeks of losses, domestic equities staged a mild recovery from six-month lows, with both key market indices Sensex and Nifty reclaiming the psychological 26,000 and 8,000 levels, respectively.
The 50-share NSE Nifty ended the day at 8,114.30, up 148.80 points, or 1.87 percent after shuttling between 8,122.25 and 7,976.75.
State Bank of India on Friday said it will raise Rs 5,681 crore by issuance of preferential shares to the central government, its majority shareholder.
Leading bourse National Stock Exchange (NSE) will auction investment limits for overseas investors for purchase of government debt securities worth Rs 22,171 crore on November 28.
The benchmark BSE Sensex recovered by nearly 121 points and the Nifty reclaimed 8,000-mark in early trade today on fresh buying by investors as the December derivative contracts started on a better note amid mixed Asian cues.
The rupee on Friday recovered from its 39-month closing low by rising 9 paise to 68.64 against the dollar in early trade at the Interbank Foreign Exchange market on fresh selling of the US currency by banks and exporters.
As the rupee plunged to a record low today, Finance Ministry said it is closely monitoring the currency movement.
Breaking its two-day rally, the BSE Sensex tumbled 192 points to end below the 26,000-mark today after the rupee collapsed to a life-time low against the dollar amid continued foreign fund outflows.