India builds up record FX after Fed hints rate hike in future.
The entry of the deep-pocketed conglomerate is expected to heighten competition.
The Budget loosened the reins on public spending to drive growth.
India's banks rely on overnight borrowings to fund longer-term lending.
The deal will provide Suzlon with much needed liquidity.
Indian bond yields may not spike if the government opts to increase spending when it unveils its annual budget in late February.
Earlier, India said the headline annual consumer price inflation accelerated to 5 per cent, compared with a 4.4 per cent print in November.
Prime Minister Narendra Modi was elected last year on hopes he would revive a languishing economy.
Investors from across the globe are keen to invest in Gujarat.
The rupee had weakened by 23 paise to end at 63.51 against the American currency on Wednesday on month-end dollar demand from oil companies and persisting selling by foreign funds in stocks.
JP Morgan may buy stake in debt -laden SpiceJet
The rupee had gained five paise to close at 63.25 against the dollar in on Monday's trade on fresh selling of the US currency by exporters amid bullish stocks.
The rupee has posted its biggest single-day fall in more than four months to end at 62.95 against the dollar.
The RBI expects inflation in 2015 to hover around 6 per cent -- its target for January 2016 -- and sees risks to the target evenly balanced.
Rupee ends at 61.89 against the dollar, falls for second straight day.
India's antitrust regulator has approved Sun-Ranbaxy deal, subject to the companies divesting seven products.
The rupee had rebounded 15 paise to close at two-week high of 61.77 against the dollar at the Interbank Foreign Exchange on Friday.
The rupee had edged higher by four paise to end at 61.51 against the American currency in yesterday's trade on fresh selling of dollars by banks and exporters.
The dollar's weakness against other currencies overseas and a higher opening in the domestic equity market supported the rupee, forex dealers said.