Markets rally ahead of RBI decision

Mumbai: The BSE Sensex extends gains to 0.95%, while the broader 50-share Nifty adds 1%.

Banks lead gainers ahead of the RBI’s policy decision on Monday as traders bet the central bank could deliver a cut in the repo rate to bolster growth, while also cutting the cash reserve ratio to ease tight liquidity.

ICICI Bank gains 2.9%, while HDFC Bank gains 1.6%. Property shares also gain; DLF up 1.2%.

Tata Motors shares extend gains to 4.5%, after global sales rose 12% in May.

Improved global backdrop helps, as major central banks plan to take coordinated action to stabilize markets should Greek elections result in turmoil.