[By NBC-1TV H. J Yook]The Mumbai Sensex has made significant gains in trading this morning (January 14th), as Indian inflation fell to an 11-month low in December.

This is according to fresh Wholesale Price Index data -- the main gauge of inflation for the nation -- which showed the annual rate of inflation easing to 7.18 per cent in the last month of the year from 7.24 per cent in November.

Hopes of an interest rate cut have been boosted by this news, putting pressure on the Reserve Bank of India to make changes when its policymakers meet on January 29th.

The Central Bank has not lowered interest rates since April because inflation has remained higher than seven per cent as a result of a weak rupee and rising fuel costs.

At 10:00 GMT today, the Mumbai Sensex rose by 1.2 per cent to 19906.4 points -- a jump of 242.7 points.