Sensex, Nifty open higher amid positive updates ahead of RBI rate decision

Nifty and Sensex rose about 0.6 per cent and 0.7 per cent, respectively, in the previous session, recovering from their longest weekly losing streak in 25 yrs.

Indian shares opened higher on Tuesday, continuing their rebound from the previous session as global developments and positive quarterly business updates comforted investor sentiments ahead of the crucial policy decision by the Reserve Bank of India.

A screen displays a message of the National Stock Exchange (NSE) listing ceremony at the Bombay Stock Exchange (BSE) in Mumbai on September 24 (REUTERS/File)

GIFT Nifty futures were trading at 22,648 points, as of 7:19 am on Tuesday, indicating a positive start for the benchmark Nifty 50, which closed at 22,555.75 on Monday, according to figures cited in a Reuters report.

The Nifty and Sensex rose about 0.6 per cent and 0.7 per cent, respectively, in the previous session, recovering from their longest weekly losing streak in 25 years.

The rebound was aided by lower oil prices and easing concerns about aggressive US monetary tightening following softer-than-expected jobs data.

Positive quarterly updates from select financial companies underpinned the rally, while consumer and energy stocks were also among the gainers.

"Benchmark Nifty has shown signs of relief recovery after testing the crucial long-term support zone around 22,400-22,600. Going ahead, the 22,650-22,800 zone is likely to act as the immediate hurdle," Reuters quoted as saying Ajit Mishra, senior vice president of research at Religare Broking.

Amid the rebound in stock markets, Reserve Bank of India's interest rate decision on Wednesday is in focus.

Market consensus has converged on a 25-basis-point rate hike, which would be the RBI's first increase since February 2023, reflecting concerns over crude prices above $100 a barrel, a weakening rupee and the weakest monsoon in a decade.

Brent crude futures stayed near $100 a barrel after falling $2 on Monday, aided by increased Middle East oil exports and a Group of Seven pledge to raise supplies weighed on prices, although disruption risks from the US-Iran war limited losses.