(Reuters) - Indian shares are set to open lower on Thursday, tracking a slide in global equities as U.S. debt ceiling negotiations continued with no resolution in sight and weighed on sentiment.
India's NSE stock futures listed on the Singapore exchange were down 0.22% at 18,244.50, as of 8:14 a.m.
Wall Street equities declined overnight after debt ceiling talks dragged on, with time running short ahead of the June 1 deadline. Rating agency Fitch Ratings placed U.S. AAA rating on a negative rating watch, on risks that the government could miss payments on some of its obligations.
Meanwhile, the U.S. Federal Reserve continued to forecast a mild recession later this year, followed by a modestly-paced recovery, minutes of the latest policy meeting showed.
The concerns weighed on sentiment and triggered a rise in safe haven assets, including the U.S. dollar. Asian equities remained subdued.
Indian shares snapped a three-day winning streak on Wednesday, but foreign institutional buying continued. Foreign Institutional Investors (FIIs) purchased 11.86 billion rupees ($143.4 million) worth of equities on Wednesday. FIIs have bought Indian shares in 19 of the last 20 sessions since April 26.
The Nifty gained 2.65% over the period, with stable corporate earnings also aiding the rise.
"Domestic markets have taken a pause with the Nifty facing minor resistance at higher levels (of) 18,400-18,450," said Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services.
"The overall positive structure remains intact, with a view of buy on dips."
Stocks to watch
** Oil India Ltd: Co beats fourth-quarter profit estimates on higher gas prices.
** FSN E-Commerce Ltd: Co posts rise in Q4 pre-tax profit on higher margins.
** B L Kashyap and Sons Ltd: Co bags new order aggregating to 1.32 billion Rupees.
** Garden Reach Shipbuilders & Engineers Ltd: Co enters into a contract with Indian Navy, worth 2.49 billion Rupees.