TORONTO (Reuters) — Tamer inflation promises to be a boon for stocks in coming months, offering the tantalising hint of interest rate cuts and higher equity valuations.The big winners are likely to be interest-rate sensitive sectors such as financial services, telecoms and utilities. Combined, the three groups account for 38.4 percent of the Toronto Stock Exchange’s S&P/TSX composite index .

The index hit a record high last Wednesday, finding support in comments by US Federal Reserve chairman Ben Bernanke, who said inflation was easing in the US.

The TSX reached a high of 13,258.75 and finished at a record close of 13,204.46 after Bernanke’s comments. The TSX ended at 13,311.95 Friday, up 1.7 percent on the week.

“Unequivocally good,” George Vasic, equity strategist at UBS Securities Canada, said of the impact of easing inflationary pressures on the TSX. “The possibility that Bernanke believes inflation may be easing and therefore interest rates may come down is a very market-friendly scenario.

But Gavin Graham, chief investment officer at Guardian Group of Funds, said a low inflation picture may not necessarily be good news for a key part of the TSX if it comes as a function of slowing demand for commodity prices.