Sensex rallies on hopes RBI will hold rates; IT stocks lead

Reuters Market Eye - The BSE Sensex gains 1.3 percent, while broader Nifty advances 1.1 percent. Traders cite hopes the Reserve Bank of India will keep interest rates on hold for a second consecutive month at its policy review on January 28.

Data on Friday showed industrial output in November unexpectedly contracted, while consumer prices data due later in the day is expected to show easing inflation.

Stocks also track higher Asian shares after a surprisingly weak U.S. jobs report on Friday revived speculation that the Federal Reserve could keep policy loose for longer.

Foreign investors bought Indian shares worth 681 million rupees on Friday, exchange data showed, after selling in four of the previous five sessions.

Software services exporters lead gains after Infosys reported better-than-expected quarterly results on Friday.

Tata Motors Ltd gains 2.15 percent after key unit Jaguar Land Rover sold a record volume of vehicles last year.

(Reporting by Indulal PM)