BSE Sensex posts biggest single-day gain this year

MUMBAI (Reuters) - The BSE Sensex rose nearly 2 percent to post its biggest daily gains this year on expectations the Reserve Bank of India will keep interest rates on hold and the U.S. Federal Reserve will stick to its ultra-loose monetary policy for longer.

The benchmark BSE Sensex closed 1.81 percent higher at 21,134 points, while the broader Nifty ended up 1.64 percent at 6,272.75.

Software services exporters, including Infosys Ltd and Tata Consultancy Services led the gains after Infosys' quarterly earnings beat expectations on Friday.

(Reporting by Indulal PM; Editing by Prateek Chatterjee)