BENGALURU (Reuters) - Indian shares are set to track global equities higher on Tuesday, with the benchmark Nifty 50 likely to hit record highs, amid easing volatility.

The GIFT Nifty was trading at 23,579.50 as of 08:48 a.m. IST, indicating that the benchmark Nifty 50 will open at an all-time high after closing at 23,465.60 on Friday.

The Nifty added about 4.15% in the last two weeks, logging record closing highs and building on the gains made after the results of the national elections.

Improving rate outlook after cooler-than-expected U.S. inflation data have also supported risk sentiment across global equities, with markets largely expecting a rate cut in September.

The odds of a 25 basis point Fed rate cut in September remained at 57.5%, staying above 50% since Wednesday, according to CME's FedWatch Tool.

A Fed rate cut could lead to foreign inflows into emerging markets like India, adding heft to domestic equities, two analysts said.

Wall Street equities rose overnight, with S&P 500 and Nasdaq Composite indexes logging record highs. [MKTS/GLOB]

Asian markets opened higher, ahead of the Reserve Bank of Australia's policy decision, where the central bank is expected to keep rates unchanged.

Volatility in domestic markets has fallen since the election results, indicating a stable environment. The Nifty volatility index eased to 12.82 on Friday, the lowest since April 29, 2024.

Both foreign and domestic investors were buyers on Friday, purchasing stocks worth 21.76 billion rupees (about $261 million) and 6.56 billion rupees, respectively, exchange data showed.

Stocks to watch:

Bharti Airtel: Company has prepaid 79.04 billion rupees to clear spectrum dues.

Rail Vikas Nigam: Company has emerged as lowest bidder for a project worth 1.6 billion rupees from East Coast Railway.

Som Distilleries: Indian police launched investigation into the company after the government's child rights agency announced that it found children working at a distillery.

($1 = 83.5220 Indian rupees)

(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Eileen Soreng)