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Indian shares are likely to open higher on Tuesday, tracking a rally in global stocks on renewed confidence that major global central banks will start lowering interest rates this year.

The Gift Nifty was trading at 22,590 as of 8:01 a.m. IST, indicating that the Nifty 50 will open slightly higher than Monday's close of 22,442.70.

Asian shares made 15-month highs on Tuesday as the European Central Bank grows more confident about cutting rates and the U.S. Federal Reserve said it would "eventually" lower rates. [MKTS/GLOB]

However, with Indian shares near record-high levels, volatility has risen and hit a 15-month high on Monday. Analysts expect volatility to stay elevated with the national elections and earnings season underway.

"The significant increase in the volatility index is starting to impact sentiment, potentially continuing to exert pressure on the Nifty as it rises," said Ajit Mishra, senior vice president, research, Religare Broking Ltd.

The Nifty 50 finished lower on Monday, while the BSE Sensex closed little changed.

Foreign portfolio investors sold Indian shares worth 21.69 billion rupees (about $260 million) on a net basis on Monday, while domestic institutional investors bought a net 7.81 billion rupees of stocks.

STOCKS TO WATCH:

1. Reliance: Sources told Reuters that the oil refiner has resubmitted a request for a U.S. license to import Venezuelan oil.

2. Higher demand for its home and personal care products helped Godrej Consumer Products report a rise in its fourth-quarter adjusted profit.

3. Drugmaker Lupin missed quarterly profit estimates as higher costs outweighed strong demand in North America and Indian markets.

KEY EARNINGS TODAY:

Dr. Reddy's Laboratories, JSW Energy, SRF, Voltas, United Breweries ($1 = 83.4610 Indian rupees)