Shares of banks, including State Bank of India and ICICI Bank gained on expectations that the Reserve Bank would cut interest rates in its quarterly monetary review on Tuesday.

The banking segment index, bankex, surged by 141.45 points to 11,521.22 on the Bombay Stock Exchange. Banking and auto were the only two segments that rose on the BSE. The overall mood in the market was weak, with benchmark Sensex falling 208.88 points to close just over 18,000 points. Marketmen said the RBI might lower the repo rate at the policy meeting on Tuesday, taking cues from the US Federal Reserve surprise 0.75 per cent cut in key rate. RBI meets a day before the scheduled meeting of a Fed committee that decides on rates and the US central bank is expected to reduce the rate further.

ICICI Bank gained 1.2 per cent to Rs 1,273.70. SBI, biggest in India by asset value, gained 1.7 per cent to Rs 2,307.7. Canara Bank rose 5.1 per cent to Rs 304.40. SBI also gained as Citigroup raised its price target to Rs 2,790 rupees from Rs 2,430. after the bank posted higher-than-expected profit in Q3.