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Indian shares set to fall after strong U.S. data stokes rate hike fears

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BENGALURU (Reuters) – Indian shares are set to track Asian peers lower on Tuesday, as data showing strength in the U.S. economy raised fears of a prolonged high interest-rate cycle, while focus shifts to the local central bank’s monetary policy decision due Wednesday.

India’s NSE stock futures listed on the Singapore exchange were down 0.35% at 18,744 as of 06:53 a.m IST. The blue-chip indexes had closed little changed on Monday.

U.S. services industry activity unexpectedly picked up in November, with employment rebounding, signalling momentum in the world’s largest economy and sparking concerns that the Federal Reserve could tighten policy further to tackle inflation.

Wall Street slid after the data, and Asian shares declined in early Tuesday trading, with the MSCI Asia ex Japan index falling 0.87%.

Indian markets will now be focused on the central bank’s monetary policy decision. The Reserve Bank of India is expected to raise interest rates by a smaller 35 basis points to 6.25%.

Foreign institutional investors sold a net 11.39 billion rupees ($139.09 million) worth of equities on Monday, while domestic investors bought 26.08 billion rupees ($318.48 million) worth of shares, as per provisional NSE data.

Stocks To Watch:

** Adani Enterprises, NDTV: Adani closed its open offer to buy a 26% stake in NDTV, becoming its biggest shareholder.

** Kalpataru Power Transmission: To consider raising funds through issuing non-convertible debentures.

** Bajaj Consumer: To consider a share buyback proposal on Dec. 9.

** IRB Infrastructure Developers: November toll collection increases about 39% Y/Y.

($1 = 81.8900 Indian rupees)

(Reporting by Bharath Rajeswaran and Akansha Victor in Bengaluru; Editing by Janane Venkatraman)

Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibilty for its content.

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