(Reuters) - Indian shares are set to open lower on Wednesday, tracking global peers, after weak economic data from the United States, euro zone and China triggered caution and weighed on risk sentiment.
India's GIFT Nifty on the NSE International Exchange was down 0.27% at 19,748.5 as of 8:22 a.m. IST.
Asian markets edged lower on Wednesday, mirroring Wall Street losses overnight, as data indicated tightness in the labour market despite the U.S. Federal Reserve's rate hikes.
The data provided room for the U.S. central bank to hike rates in September, dampening sentiment as most investors saw the Fed rate hike in its July meeting as the last in the current tightening cycle.
Ratings agency Fitch downgraded the U.S. long-term debt rating to AA from AAA, citing potential fiscal deterioration over the next three years.
Weak factory activity data from China and euro zone further weighed on investor sentiment.
The Nifty 50 and Sensex settled down 0.10% each on Tuesday. Analysts expect the short-term trend for the bluechips to remain choppy.
Foreign institutional investors (FIIs) sold 928.5 million rupees ($11.28 million) worth of shares on a net basis on Tuesday, while domestic institutional investors (DIIs) purchased 10.36 billion rupees of equities, as per provisional NSE data.
Stocks to watch
** DLF: One of DLF's top shareholders, Kushal Pal Singh, sells 14.5 million shares, his entire stake (0.59%) in the company, at an average price of 504.21 rupees apiece.
** Ashok Leyland: July medium and heavy commercial vehicle sales at 9,571 units, vs 8148 units year-on-year.
** Ambuja Cements: Company reaches deal to buy majority stake in operations of Sanghi Industries, two sources with direct knowledge said.
** TVS Motor Company: Co posts 4% growth in sales in July.
** Key earnings on Tuesday: Titan Company, Interglobe Aviation, Gujarat Gas, Godrej Properties.