Indian shares seen up before RBI policy decision

MUMBAI (Reuters) - Indian shares are seen opening higher on Tuesday on expectations the Reserve Bank of India will cut interest rates at a policy review, with sentiment underpinned by gains in some Asian markets.

India's central bank reviews monetary policy on Tuesday, with analysts slightly favouring a cut in the key lending rate following hefty U.S. rate cuts last week.

Seven of 13 analysts polled by Reuters expect a 0.25 percent cut in the repo rate to 7.50 percent. The announcement is due at noon.

Top car maker Maruti Suzuki, power producers Suzlon Energy and Tata Power and steel maker Steel Authority report December quarter results on Tuesday.

"Markets seen getting better today," said Ambareesh Baliga, vice president at Karvy Stock Broking.

"If a rate cut happens, the recovery we saw yesterday will continue. If it doesn't happen, it will be negative for banks, auto and real estate stocks."

The 30-share BSE index ended down 1.14 percent down at 18,152.78 on Monday, recovering from being 5 percent down during trade as banks and auto stocks rose on rate cut hopes.

Data showed foreign funds bought $166 million worth shares on Friday, their first net purchase since Jan. 14. The funds had unloaded $3.6 billion of stocks in the seven sessions to Thursday.

Most major Asian stock markets were trading higher on Tuesday with investors betting on another deep U.S. rate cut this week.