By Bharath Rajeswaran
BENGALURU, Feb 22 (Reuters) - Indian shares are set to
fall on Wednesday after strong macroeconomic data from the U.S.
heightened fears of a prolonged high interest rate regime ahead
of the release of the Federal Reserve's latest monetary policy
meeting minutes.
India's NSE stock futures listed on the Singapore exchange were down 0.48% at 17,759.50 as of 8:08 a.m. IST.
U.S. markets fell after a survey showed that business
activity in the largest economy rebounded to an eight-month high
in February.
The data, which signalled resilience in the U.S. economy,
heightened fears of the Fed maintaining higher interest rates
for longer to tackle the rise in inflation.
Investors await the release of Fed minutes, due later in the
day, for cues on the U.S. central bank's rate hike trajectory.
Investors also await the release of the Reserve Bank of
India's February meeting minutes, due later in the day, for cues
on its monetary policy. India's retail inflation rose above the
upper limit of RBI's targeted 2%-6% band in January.
Asian markets declined, with the MSCI's broadest index of
Asia-Pacific shares outside Japan losing 0.91%. Foreign institutional investors (FII) snapped a two-day
selling streak and purchased a net 5.26 billion Indian rupees
($63.50 million) worth of equities on Tuesday. FII selling in
Indian stocks has moderated in February, after rising to a
seven-month high in the previous month.
Meanwhile, multiple media reports suggested the timing for
the domestic equity market trade is likely to be extended to 5
p.m. IST from 3:30 p.m. The Securities and Exchange Board of
India is yet to comment. The NSE has extended trading hours for
interest rate derivatives to 5 p.m. IST from Feb. 23.
STOCKS TO WATCH
** Reliance Industries : Co's unit completes
secondary purchase of shares in NexWafe GmbH for Eur 755,684.
** Sapphire Foods : Co's overseas unit raises stake
in its subsidiary Gamma Island Food to 75% from 51% by
acquisition of shares for 18,840,200 MVR (Maldivian Rufiyaa)
** Lemon Tree Hotels : Co signs franchise agreement
for 34-room property in Manali.
($1 = 82.8330 Indian rupees)
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by
Janane Venkatraman)
+919769003463))
