BENGALURU: Indian shares are set to open higher on Tuesday, after closing at new record highs for three straight sessions, while Asian peers were subdued ahead of Federal Reserve Chair’s congressional testimony and key US jobs data due later in the week.

India’s GIFT Nifty was trading at 22,485.50 as of 7:56a.m. IST, indicating that the Nifty 50 will open above its Monday’s close of 22,405.60.

Both the Nifty 50 index and BSE Sensex closed at new record highs for three straight sessions after data showed that the Indian economy grew at 8.4% in October-December, marking its fastest pace of growth in six quarters.

Meanwhile, Moody’s Investors Services significantly raised its 2024 growth forecast to 6.8% from an earlier projection of 6.1% following the growth data.

Sustained domestic inflows have also aided the rally. Domestic institutional investors net bought shares worth 35.43 billion rupees ($427.3 million) on Monday, while foreign portfolio investors offloaded 5.64 billion rupees of shares.

Energy helps Indian shares inch up to record close for third session

“Given the positive domestic sentiments, we expect market momentum to continue over the next few sessions,” said Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services.

However, the broader, more domestically-focussed small and mid-caps could remain under pressure, on concerns over excessive fund inflows into the segments, two analysts said.

Asian markets were subdued on the day, while Wall Street equities closed lower overnight.