Indian markets extended their rebound on Tuesday ahead of the Reserve Bank of India’s policy decision. At 1:33 pm, the Sensex was up 514.45 points, or 0.71 percent, at 72,896.92. The Nifty gained 151 points, or 0.67 percent, to 22,706.75.

Gains were led by the Nifty Private Bank index, up 1.51 percent, followed by Chemicals at 1.46 percent and Oil and Gas at 1.20 percent. The IT index slipped 1.11 percent. Lower oil prices and hopes of a less aggressive US rate path supported sentiment.

Investors now await Wednesday’s RBI decision. Market consensus expects a 25-basis-point rate hike. Foreign portfolio investors remained net sellers, while domestic institutions continued to support the market.

Asian markets opened higher after Wall Street’s gains. Brent crude hovered near $100 a barrel. An analyst quoted in the market coverage said investors may stay cautious in the near term, though the long-term outlook remains positive on strong fundamentals.