(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.