(Reuters) - Indian shares rose for a fourth consecutive session as banks rallied after the Reserve Bank of India allowed lenders to include old 500 and 1,000 rupee notes as part of their cash balance, making it easier to meet cash reserve ratio requirements.
But indexes still posted their biggest fall since February as sentiment was dented by fears about the economic fallout from the country's demonetisation drive and on heavy foreign selling.
The BSE Sensex rose 0.98 percent to 26,652.81, but was down 4.61 percent this month.
The broader Nifty ended up 1.01 percent at 8,224.50, but fell 4.79 percent for the month.
(Reporting by Tanvi Mehta in Bengaluru; Editing by Sunil Nair)
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