Banking stocks gain on growing rate cut hopes

Dealers cite growing expectations for an interest rate cut from the RBI

The NSE's banking index extends gains, now up 1.1 percent vs NSE's index gain of 0.4 percent, after headline inflation for July comes in below expectations.

Dealers cite growing expectations for an interest rate cut from the Reserve Bank of India at its mid-September policy review, given lower-than-expected inflation comes amid signs of slowing economic growth.

ICICI Bank rises 2 percent, while State Bank of India adds 0.8 percent.