BENGALURU (Reuters) - Indian shares are set to open higher on Tuesday, tracking gains in Asian peers, and boosted by metal stocks on surge in global prices and strong domestic earnings.

India's GIFT Nifty was trading at 22,787 as of 07:12 a.m. IST, indicating that the Nifty 50 will open above its close of 22,643.40 on Monday.

A string of better-than-expected quarterly results from Nifty 50 components including ICICI Bank and UltraTech Cements boosted the benchmarks on Monday.

Corporate earnings optimism has offset concerns about higher-for-longer interest rates ahead of the U.S. Federal Reserve policy meeting outcome this week, said Deepak Jasani, head of retail research, HDFC Securities.

Metal stocks are expected to continue the rally on extended surge in global prices, driven by supply concerns, analysts said. [MET/L]

Asian shares inched up, while the Wall Street stocks ended higher overnight, as investors eye the Fed's interest rate outlook. [MKTS/GLOB]

Markets are pricing in a 97.3% chance of the Fed keeping rates unchanged in May 2024, according to the CME FedWatch tool, compared with a 90.7% chance at the end of March.

Foreign institutional investors sold Indian shares for a sixth straight session on Monday, offloading stocks worth 1.69 billion rupees ($20.3 million), while domestic institutional investors bought shares worth 6.92 billion rupees on a net basis.


** PNB Housing Finance reported a surge in fourth-quarter profit on sustained home loans demand and a decline in bad loans

** Apparel retailer Trent also posted a rise in quarterly profit as it opened more lower-priced Zudio brand of stores.

** Key earnings: Adani Total Gas, Exide Industries, Indian Oil

($1 = 83.4480 Indian rupees)

(Reporting by Manvi Pant in Bengaluru; Editing by Rashmi Aich)