Expectations for more M&As boost smaller Indian lenders

Reuters Market Eye - Kotak Mahindra Bank buys ING Vysya Bank in record $2.4 billion share deal.

Deal to raise speculation over likely mergers in the sector, say traders.

Lenders that markets see as potential acquisition candidates rise.

Karnataka Bank 2.3 percent

Karur Vysya Bank 2 percent

City Union Bank 2 percent

Lakshmi Vilas Bank 1.4 percent

Dhanlaxmi Bank 4.2 percent

South Indian Bank 3.4 percent

Those markets see as potential suitors also edge higher. ICICI Bank and Axis Bank up 0.2 pct each.

(Reporting by Abhishek Vishnoi)