India’s banking system faced a cash crunch. The Reserve Bank of India added funds to ease the situation. This followed negative balance of payments and foreign investor outflows. The RBI sold dollars to bolster the rupee. Trade deficit widened, and deposit growth slowed. These factors contributed to the liquidity deficit. Borrowing costs for banks and companies increased.
Can Nifty, Sensex extend gains after rallying up to 2% last week? 4 factors to watch on Monday
Indian benchmark indices Sensex and Nifty ended the week higher, gaining up to 0.5%, even as broader markets declined amid rising crude oil prices above
November 1, 2026