Sensex gains around 100 points; RBI further cuts short-term rates

Reuters Market Eye - The BSE Sensex rose on Tuesday after the 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.

The Nifty was trading 0.33 percent higher while the BSE Sensex gained 0.42 percent at 1339 pm.

Bank stocks, especially those more dependant on short-term funding, surged after RBI's rate-cut action. Yes Bank Ltd surged 4.88 percent while Axis Bank Ltd gained 0.68 percent.

(Reporting by Abhishek Vishnoi)