Real estate developers rallied after newspaper Times of India reported on Tuesday some banks were cutting home loan rates for new borrowers, sparking hope of increased property sales in the country.

DLF and Unitech rose about 1% each on the report, which said that lenders Canara Bank and IDBI Bankhad slashed these rates to attract new borrowers.

The reported moves sparked hopes other rival banks would be forced to match the cuts in the loan rates.