Shares open higher ahead of RBI rate decision

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 Nifty 50 index was up 0.10 per cent at 18,747.10 as of 9:16 am, while the benchmark S&P BSE Sensex rose 0.11 per cent to 63,211.01.

The RBI's rate decision is due to be announced at 10:00 am and the monetary policy committee (MPC) is expected to leave the repo rate at 6.50 per cent 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.

India's retail inflation eased to an 18-month low of 4.70 per cent in April, well below the RBI's upper tolerance level. Economists expect the next few readings to be comfortably below the 6 per cent threshold, bolstering hopes of a sustained pause in the rate cycle.