Indian shares poised to extend rebound ahead of RBI policy verdict

Indian equities were set for a firmer open on Tuesday, building on the prior day's recovery, as Business Recorder reported. Upbeat global signals and positive quarterly business updates have improved sentiment before a closely watched monetary policy announcement. Early trading in GIFT Nifty futures, at 7:19 a.m. IST, stood at 22,648 points, pointing to a higher start for the Nifty 50, which ended Monday at 22,555.75.

On Monday the Nifty and Sensex gained roughly 0.6 per cent and 0.7 per cent, lifting the indexes out of their longest weekly losing run in 25 years. Lower crude prices and eased fears of forceful monetary tightening in the United States, after softer than expected jobs data, supported the rally. Financial companies with positive updates, along with consumer and energy stocks, also contributed to the gains.

Brent crude hovered close to $100 a barrel after a $2 fall on Monday, as higher Middle East exports and a Group of Seven supply pledge weighed, though disruption risks linked to the US-Iran war limited losses. Foreign portfolio investors sold for a seventh straight session, pulling out Rs46.99 billion ($488 million), while domestic institutions bought Rs51.82 billion of stock. The Reserve Bank of India is widely expected to raise its rate by 25 basis points on Wednesday, marking its initial hike since February 2023.