BENGALURU: Indian shares are set to open higher on Tuesday, tracking the rise in their Asian peers as hopes of a China stimulus package and Wall Street’s gains boost risk appetite.

India’s GIFT Nifty on the NSE International Exchange was up 0.15% at 19,486, as of 8:15 a.m. IST. The domestic blue-chip indexes rose marginally on Monday, led by gains in Reliance Industries.

Asian markets rose nearly 1% after China extended support to the property sector, raising hopes of further stimulus to revive its economy. Wall Street equities closed marginally higher overnight.

India’s inflation likely snapped a four-month decline in June due to rising food prices, a Reuters poll of economists showed ahead of official data after the close on Wednesday.

While the Reserve Bank of India is expected to leave interest rates unchanged until the end of the year, a rise in inflation could prolong the high-interest rate regime.

Since the surprise rate pause by RBI on April 6, the Nifty 50 has risen nearly 10% to hit record-high levels. Despite the sharp rise, analysts expect further upside.

Indian shares close higher, shrugging off weakness in Asia, Europe

“We believe (the) rally still has legs,” HSBC Global Research said in a note on Monday, citing tenable valuations, earnings growth, an appealing macro backdrop and favourable external factors. “Any near-term consolidation, if at all, should be shallow,” it said. Foreign institutional investors bought 5.88 billion rupees ($71.3 million) of Indian equities on a net basis on Monday, while domestic investors purchased 2.88 billion rupees of shares, as per provisional NSE data.