India's Sensex index opened higher by 626.43 points, or 0.80 percent, to reach 79,055.38 points today, ahead of the Reserve Bank of India's monetary policy decision. Markets widely expect the central bank to keep interest rates unchanged, with the RBI governor likely to signal a slightly hawkish stance amid inflation risks from volatile crude oil prices and below-normal monsoon rainfall. Twelve of the 16 major sectoral indices advanced at the open, while the small-cap and mid-cap indices rose 0.5 percent and 0.6 percent, respectively.
RBI expected to hold rates, with hawkish stance due to inflation risks; INR may weaken if rates stay unchanged while USD remains firm.
