New Delhi, April 22 -- HDFC Bank, Kotak Mahindra Bank, SBI, Canara Bank shares rallied on Tuesday, fuelling Bank Nifty index to another record high level. Gains in banking stocks came after the Reserve Bank of India (RBI) issued the final guidelines on the liquidity Coverage Ratio (LCR) with more lenient rules than initially proposed.

Bank Nifty index surged more than 1%, extending its bull run for the sixth consecutive session. Canara Bank, Bank of Baroda, Kotak Mahindra Bank and HDFC Bank shares were the top gainers on the banking index, rallying more than 2% each. State Bank of India (SBI), Punjab National Bank (PNB) and Federal bank shares followed with over 1% gain each.

Rally in banking stocks was propelled by easier than expected...