Banking stocks rallied on Thursday after India's consumer price index (CPI) or retail inflation fell to a 25-month low to 8.10% (combined) in February 2014 as compared to 8.79% in January 2014. The corresponding inflation rates for rural and urban areas are 8.51% and 7.55%.

The combined inflation rate for food and beverages stood at 8.57% for February. Food and beverages inflation rates for rural and urban areas stood at 9.27% and 7.10% respectively.