The BSE benchmark index, Sensex, gained over 56 points at 17151 on Monday as investors bought equities amid expectations of rate cut by the Reserve Bank of India (RBI) at the annual credit policy announcement on Tuesday, with banking and realty stocks making gains, as inflation eased marginally.

Auto, capital goods and FMCG stocks were also in demand on hopes that the RBI would cut repo rates (at which it lends to banks) by 25 basis points, signalling an end to the tight money policy stance to revive growth.

The Sensex opened lower at 17047.87 and declined further to 17010.16. Later, it recovered to 17173.06 before settling at 17150.95, up 56.44 points from Friday's close of 17094.51.

In Europe, key markets in France and Germany were up, while the UK's FTSE was down. — PTI