(Corrects second paragraph to say BSE index rose to its highest since Jan. 5, not Jan. 1)
REUTERS - India's stock markets rose more than 2 percent on Wednesday to their highest level in nearly 3-1/2 months as data showing easing inflation and a government forecast for an above-average monsoon rains sparked hopes for the economy and for more rate cuts by the Reserve Bank of India (RBI).
The benchmark BSE Sensex rose as much as 2.07 percent to its highest since January 5. The broader NSE Nifty rose as much as 2.01 percent.
(Reporting by Aastha Agnihotri; Editing by Subhranshu Sahu)
