Sensex and Nifty clocked marginal gains in the early morning trade on June 7, ahead of the RBI policy outcome and commentary. IT and healthcare stocks led the gains in Nifty, while auto and financial services stocks declined.

"The uncertainty on the political front has been resolved. Today, markets are focused on the RBI policy, which will provide clarity on interest rates and the economic situation. Although we might see a flattish move until 10:00 am, we'll get a clearer direction after that," said Kunal Rambhia, Fund Manager & Trading Strategist at The Streets.

At 9.27 am, the Sensex was up 332 points or 0.4 percent at 75,406 and the Nifty 50 was up 104 points or 0.5 percent at 22,926. About 2,168 shares advanced, 581 shares declined, and 85 shares were unchanged.

All 13 sectoral indices were in the green, with Nifty IT gaining over 2 percent, emerging as the top performer among them. Infosys, Wipro, and Tech Mahindra led the gains in Nifty IT as they rose 2-4 percent.

IT major Wipro gained over 4 percent in early trade after it was awarded a $500-million deal by a leading US communication service provider over five years.

Meanwhile, Kotak Mahindra, IndusInd Bank, and SBI Life were the biggest laggards in the Nifty 50, each declining between 0.5-1.0 percent.

In the broader market, the BSE Midcap rose 0.2 percent and BSE Smallcap rose 0.6 percent.

"Midcaps have a lot of room for upside. It might not be an immediate rally, but we could see a slow and steady rise over the next month. It will be a very selective move," added Rambhia.

Despite Domestic Institutional Investors (DIIs) absorbing the Foreign Institutional Investors (FIIs) selling pressure on Indian equities, the stretched valuations of the domestic market remain a concern, market experts said. "If Nifty 50 falls to the levels it did on election outcome day (June 4) and consolidates at those levels for a month or two, we will be more comfortable," Rambhia said.

Investors are also awaiting the ministry allocations set to take place over the weekend. While some believe that the BJP's majority influence will make ministry allocations a non-issue, Gaurang Shah of Geojit Financial Services highlighted that the demands from alliance partners could make the markets uneasy.

"We'll have more clarity on June 9. After that, the market will start focusing on the monsoon, Q1 FY25 earnings, GDP growth, GST collection, and flows," Shah said.

Additionally, investors are eagerly anticipating the release of the US's weekly jobless claims report due today. The data might signal an easing in the labor market, potentially prompting the US Federal Reserve to begin cutting interest rates.