BENGALURU: Indian shares opened higher on Thursday, with the benchmarks closing in on all-time highs, ahead of the Reserve Bank of India’s (RBI) monetary policy decision in which the central bank is widely seen holding key rates steady.

The blue-chip Nifty 50 index was up 0.10% at 18,747.10 as of 9:16 a.m. IST, while the benchmark S&P BSE Sensex rose 0.11% to 63,211.01.

The RBI’s rate decision is due to be announced at 10:00 a.m. IST and the monetary policy committee (MPC) is expected to leave the repo rate at 6.50% for a second straight meeting.

The RBI has raised the repo rate by a total of 250 basis points since May 2022 to keep inflation in check, before opting for a pause at the previous meeting.

Indian shares extend winning streak ahead of RBI rate decision

India’s retail inflation eased to an 18-month low of 4.70% in April, well below the RBI’s upper tolerance level.

Economists expect the next few readings to be comfortably below the 6% threshold, bolstering hopes of a sustained pause in the rate cycle.