The Nifty 50 index was up 0.2% at 17,757.10, while the S&P BSE Sensex rose 0.15% to 60,376.17, as of 09:16 a.m. IST.
The RBI is likely to raise rates by 25 basis points (bps) on Wednesday, to mark the final increase in its current tightening cycle, and then pause for the rest of the year, a Reuters poll showed, as retail inflation finally came within the central bank's tolerance band of 2%-6% in the last two months of 2022.
Market participants will focus on the RBI's commentary on the future trajectory of rate hikes, liquidity, the country's economic outlook and whether the central bank changes its stance from "withdrawal of accommodation" to "neutral."
The RBI had raised key lending rate by 35 basis points in December, after three straight 50 bps hikes, and had said its fight against inflation was not over yet.
Fed's Powell said on Tuesday disinflation has started and that he expects significant declines in inflation this year, raising hopes of less aggressive rate hikes in the future.
Wall Street closed higher overnight, while MSCI's gauge of the broader index of Asia-Pacific shares outside Japan was up 0.75%. (Reporting by Rama Venkat in Bengaluru; Editing by Dhanya Ann Thoppil and Eileen Soreng)
