Sensex gains; lenders, oil marketers lead

Reuters Market Eye - Indian markets gain, reversing early losses after March headline inflation sharply eases, raising hopes of a cut in the key repo rate on May 3.

The BSE Sensex is 0.6 percent higher and the 50-share Nifty 0.8 percent up.

Lenders lead gains as a potential rate cut could boost loan demand as RBI has already eased the repo rate twice this year.

State Bank of India gains 2.6 percent, while Bank of Baroda is 3.7 percent higher.

Oil marketing companies gain after a fall in global crude oil prices. Bharat Petroleum Corp Ltd gains 5.3 percent, while Oil & Natural Gas Corp Ltd is up 4.7 percent on hopes of a lower subsidy burden.

 

Infosys gains 2.1 percent, rebounding on value-buying, after hitting earlier in the session its lowest intraday level in a decade after the company posted lower-than-expected revenue guidance.

However, TCS falls 2.4 percent ahead of its quarterly earnings result due on Wednesday.

(Reporting by Subhadip Sircar)