BENGALURU: Indian shares rose on Wednesday ahead of the Union budget, which investors will closely watch for government measures, including spending to aid the long-term growth of the economy, with a global slowdown in the vicinity.

The Nifty 50 index rose 0.73% to 17,790.75, while the S&P BSE Sensex rose 0.76% to 60,000 as of 10:18 a.m. IST. Both benchmarks fell over 2% in January, their second straight monthly loss.

Indian government bond yields were marginally lower in early trading, while the Indian rupee opened higher versus the dollar.

Finance Minister Nirmala Sitharaman will present the Union budget at 11:00 a.m. IST, in which the Indian government will likely seek to lower its fiscal deficit, while offering incentives for investment to taxpayers.

This is the last full-year budget before the national elections in 2024 and key state elections later this year.

"The big number markets we will look out for is how (much) the government is going to spend on the infrastructure and capital goods side," said Saurabh Jain, assistant vice-president, research, SMC Global Securities.

"Also, investors will watch how the government will improve the rural demand and on the employment side," he added.

Banks and financials were the top gainers among the 13 major sectors, rising 1.1% and 1.2%, respectively.

India has pegged its economic growth at 6-6.8% in the 2023/24 fiscal year, the slowest in three years, at its pre-budget economic survey released on Tuesday.

Traders will also watch the budget for incentives to bring back foreign investors, who have piled out of the market.

Foreign institutional investors have sold 288.52 billion Indian rupees ($3.53 billion) worth of shares on a net basis in 2023 so far, according to official data.

Meanwhile, most Adani Group stocks dropped, extending their losses since short-seller Hindenburg Research's report and despite the group completing a $2.5 billion share sale a day earlier. (Reporting by Bharath Rajeswaran and Nallur Sethruaman in Bengaluru; editing by Eileen Soreng and Savio D'Souza)