Sensex gains after RBI's short-term rate cut

MUMBAI (Reuters) - The BSE Sensex rose on Tuesday led by gains in banking stocks after the Reserve Bank of India (RBI) cut an overnight interest rate on Monday, further unwinding extraordinary measures taken to defend the rupee as pressure on the embattled currency eases.

Yes Bank Ltd rose 4.25 percent, while ICICI Bank Ltd gained 2.28 percent.

The BSE Sensex rose 0.44 percent, while the broader Nifty ended up 0.38 percent.

(Reporting by Abhishek Vishnoi; Editing by Subhranshu Sahu)