India’s benchmark indexes rose on Tuesday, led by gains in financials after the Reserve Bank of India announced a slew of measures to boost liquidity in the banking system, raising hopes of an interest rate cut in February.

The Nifty 50 rose 0.56% to 22,957.25, while the BSE Sensex added 0.71% to 75,901.41.

Rate-sensitive financials rose 1.9% while banking stocks gained 1.7%.

The central bank’s measures to inject liquidity include bond purchases and dollar/rupee swaps, which analysts and traders said could be a precursor to a rate cut next month.

The RBI’s measures lifted financials higher “as easing liquidity will support credit growth and earnings of banks and non-bank lenders,” said Narendra Solanki, head of fundamental research of investment services at Anand Rathi Shares and Stock Brokers.

Liquidity support from the RBI will be particularly supportive for liquidity-constrained banks such as HDFC Bank and Axis Bank, Nomura said.

HDFC Bank and Axis Bank rose 2.5% and 3.8%, respectively, on the day.

Earnings woes drag Indian shares to seven-month low

Bajaj Finance and Mahindra & Mahindra Financial Services gained 4.3% and 3.7%, respectively, and LIC Housing Finance added 1.3%, after Citi identified the trio as potential beneficiaries of the liquidity infusion.

Auto and realty stocks, also rate-sensitive shares, gained 1.3% and 2.2%, respectively.

Seven of the 13 major sectors logged losses.

The pharma index fell 2.3% on the day, taking its two-session drop to 4.9%, weighed by concerns over the impact on AIDS drug makers from the U.S. pausing foreign aid.

Small-caps and mid-caps continued to reel under the pressure of earnings slowdown and costly valuations, dropping 1.8% and 0.5%, respectively.

Among earnings-related moves on the day, drugmaker Cipla rose about 2% after reporting third-quarter profit above estimates and consumer goods company Emami gained 3.5% after posting a rise in December quarter profit.