Sensex gains as lower inflation sparks rate cut hopes
MUMBAI (Reuters) - The BSE Sensex rose on Monday, recovering from steep falls in the previous session, after lower-than-expected inflation data and stumbling crude and gold prices cemented hopes the central bank would cut interest rates next month.
Lenders led gainers on hopes that loan growth would pick-up if the Reserve Bank of India cuts rates on May 3 for a third time this year. State Bank of India rose 3.1 percent, while Bank of Baroda gained 3.4 percent.
The BSE Sensex rose 0.63 percent, or 115.24 points, to 18,357.80.
The 50-share Nifty gained 0.72 percent, or 39.85 points, to 5,568.40.
(Reporting by Subhadip Sircar)