Domestic bourses are likely to continue their winning streak on the back positive global markets and on 'accommodative' RBI rate policy. SGX NIfty at 17,565 (8 am) indicates positive opening for Nifty futures, which on Wednesday closed at 17,513.

Stocks across Asia-Pacific region are up between 0.3 and 1 per cent except Japan's Nikkei, which ruling flat but in negative territory. Australian markets are also trading flat.

Overnight, US stocks closed higher, after oscillating between gains and losses. The tech-focussed Nasdaq remain firm and sustained higher gains of 0.64 per cent.

"We assess that today's dovish outcome emanated from growth recovery not being broad-based as yet and rising headwinds to growth from global spillovers, elevated energy prices and risk of omicron," said BofA Securities.

"While we had expected the RBI MPC to use today's policy as an opportunity to prepare markets for an impending reverse repo hike in Feb'22, restoring normalcy to the policy corridor, we found the policy relatively more dovish. We now see the RBI hiking the reverse repo rate in 2 steps, a 20bp hike in Feb'22 and return to a symmetric policy corridor by Mar'22 with a potential hike in an out of turn policy. Thereafter, we are largely sticking to our assumed path for policy normalisation, assuming that no serious third wave hits India in early 2022." it added.

Ajit Mishra, VP - Research, Religare Broking Ltd, said, as RBI policy is behind us, the focus will shift back to global cues and upcoming macro data (IIP & CPI). Further, as the number of IPOs is lined up, primary markets will keep investors busy. "Given the high volatility in the market, we would remain cautiously optimistic on the markets," he added.

Analysts also warned of profit booking due to a sharp run up in the price. "The texture of the market is positive and is likely to continue in the near term. But due to an overstretched rally, some profit booking at higher levels cannot be ruled out," said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd.