The NSE Nifty 50 index was up 0.43% at 17,462.35, as of 0350 GMT, while the S&P BSE Sensex rose 0.46% to 58,619.16.
The Reserve Bank of India has raised rates twice since May and is expected to hike again on Friday to tame persistently high inflation in Asia's third-largest economy.
In Mumbai trading, the Nifty's IT index extended gains from the previous session to rise more than 1% and was the top performer among sub-indexes. Infosys Ltd jumped 2% and provided the biggest boost to the benchmark Nifty 50.
Biscuit maker Britannia Industries was down 0.4%, ahead its quarterly earnings results due later in the day.
In broader Asia, equities rose, following a strong rally on Wall Street after data showed the services industry unexpectedly picked up in July. [MKTS/GLOB]
(Reporting by Rama Venkat in Bengaluru; Editing by Subhranshu Sahu)