MUMBAI (Reuters) - The BSE Sensex fell on Friday, retracing from near three-month highs touched a day before, after the Reserve Bank of India (RBI) cautioned it had limited room for further monetary easing, overshadowing the 25-basis-point cut in key interest rates, dragging rate-sensitive stocks such as ICICI Bank down.
HDFC Bank Ltd , India's No.3 lender by loan value, ended down 1.67 percent, State Bank of India fell 3.72 percent, while ICICI Bank fell 3.56 percent.
The BSE Sensex ended 0.81 percent lower, while the broader 50-share Nifty ended 0.92 percent down.
(Reporting by Archana Narayanan; Editing by Anupama Dwivedi)