The Sensex on Monday closed 104 points up while the Nifty ended above 8,700 after stock markets traded higher through the day. The Sensex had opened 125 points higher in the morning, ahead of the Reserve Bank of India’s policy review on Tuesday. The Nifty was also up because of increased foreign inflows.

Asian markets also rose on Monday after a United States job report bolstered hopes of an acceleration in the country’s economic growth. European stocks also opened marginally higher.

Reports have said that RBI Governor Raghuram Rajan may keep key interest rates static on Tuesday as retail inflation continues to be high. State Bank of India chief Arundhati Bhattacharya said, “We are expecting that there will be no change in rate because vegetable prices are on the rise… It will take a few months for the vegetable prices to come down when the kharif crops come into the market.” This will be Rajan’s last monetary policy review. His tenure ends on September 4.