BENGALURU, Feb 10 (Reuters) - Indian shares are set to
fall on Friday, tracking a slide in global equities on fears of
a looming recession and as sentiment soured after index provider
MSCI cut free-float designations of four Adani group companies.
India's NSE stock futures listed on the Singapore exchange were down 0.50% at 17,841.50 as of 8:00 a.m. IST.
Wall Street equities closed lower following comments from
Federal Reserve officials that a recession is looming in the
world's largest economy.
Richmond Fed President Thomas Barkin said inflation is not
really cooling off and the decline seen so far has been
distorted by some falling goods prices, implying that the U.S.
central bank could maintain higher interest rates for longer.
Analysts also warned that the steepening of the inverted
yield curve is an indicator of a potential recession in the U.S.
Asian markets fell, with the MSCI's broadest index of
Asia-Pacific shares outside Japan sliding 0.50%. Adding to the concerns in domestic equities is the
uncertainty over the Adani conglomerate, after financial index
provider MSCI cut the free-float designations of four group
companies. Analysts have warned the move could lead to outflows
and a further slide in value.
The conglomerate's stocks have witnessed a sharp selloff
following U.S. short-seller Hindenburg Research's Jan. 24
report, which flagged concerns regarding the group's financials.
Investors will also await India's retail inflation data for
January, due on Monday. A Reuters poll of economists showed that
India's annual retail inflation rose from a 12-month low in
December, but stayed within the upper limit of RBI's tolerance
band of 6% in January.
STOCKS TO WATCH
** Life Insurance Corporation of India : Co reports
27-fold jump in Q3 profit.
** Aurobindo Pharma : Co's net profit falls below
estimates in Q3 on higher input costs.
** Zomato : Co reports better-than-expected revenue
in third quarter due to rise in online orders while net loss
widens on higher expenses.
** Hindustan Petroleum Corporation : Co posts 80%
slide in Q3 profit on fall in marketing margin.
($1 = 82.5250 Indian rupees)
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by
Janane Venkatraman)
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