HDFC Bank, SBI, ICICI Bank up on rate cut hopes

Lenders rose on Monday as investors bet on a rate cut in Friday's Reserve Bank of India (RBI) rate review, with growing hopes of a chunkier 50 bps cut or a lowering of the cash reserve ratio.

The central bank may sweeten its expected 25 basis point interest rate cut with a similar reduction in the cash reserve ratio to ease tight market liquidity conditions as increasingly benign inflation gives it room to manoeuvre.

Shares of HDFC Bank, India's No.3 lender by loan value, rose 1.25 percent; State Bank of India was up 2.38 percent; while ICICI Bank gained 1.17 percent.

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