RBI Governor Urjit Patel-headed Monetary Policy Committee (MPC) will conclude its three-day meeting today.
The MPC will release its policy statement at 2:30 pm today.
That would mark the central bank's second bi-monthly monetary policy statement for 2018-19.
The RBI is widely expected to keep the key interest rate on hold to prepare for a rate hike in its next review, due on August 1.
An increasing number of economists expect the Reserve Bank of India (RBI) to raise interest rates today, a Reuters poll found, but most still think the central bank will stay on hold and use this week's meeting to prepare for an August hike.
Besides any action on interest rates, analysts will also keep a close on the commentary of MPC members.
GDP growth increased to 7.7 per cent in the January-March quarter - the fastest pace of growth in seven quarters.
With that, India retained its position as the world's fastest growing major economy, ahead of China.
The RBI had kept the repo rate - the key rate at which it lends to commercial banks - unchanged at 6 per cent in its last meeting.For the full year (2017-18), GDP growth was at 6.7 per cent, lower than the 7.1 per cent recorded in the previous year.
(Read more)GDP growth accelerated to 7.7 per cent in the March quarter, according to official data released last week.
That marked the fastest pace of GDP growth in seven quarters.
Also, India retained its position as the world's fastest growing major economy in Q4, well ahead of China.The RBI's outlook in its statement today will be guided by a rise in inflation and robust GDP growth registered by the economy in the January-March quarter.The rupee edged higher against the US dollar to close near 66 against the greenback.
(Read more) At 11:35 am, the Sensex was trading 104 points higher at 35,007 while the Nifty was up 33 points at 10,626.
Gains were led by metal, pharma and infra stocks.
(Read more)BSE benchmark indexSensexrose as much as 187 points to trade above the 35,000 mark in morning deals.
The NSENiftyrose as much as 55 points.