Indian shares set to open flat on caution ahead of GDP data

BENGALURU, Aug 31 (Reuters) - Indian shares are set to open little changed on Thursday, on caution ahead of the gross domestic product (GDP) data for the June quarter.

Indias GIFT Nifty on the NSE International Exchange was up 0.04% at 19,486.50 at 7:54 a.m. IST.

Wall Street closed higher overnight on easing rate concerns after second-quarter U.S. GDP data was revised downwards to 1.7%, signalling a slowdown in the economy which could allow the Federal Reserve to keep rates unchanged at its September policy meeting. Asian markets were little changed on Thursday.

The domestic GDP data for the April-June quarter is scheduled to be released post-market hours.

Indias economic growth likely accelerated to 7.7% in the June quarter, the fastest in a year on strong demand, robust service sector growth and increased government expenditure, according to a Reuters poll.

Also in focus is a media report on the Adani conglomerate which said that millions of dollars were invested in the stocks of the group companies through “opaque” Mauritius funds that “obscured” the involvement of alleged business partners of the Adani family.

Foreign institutional investors sold shares worth 4.95 billion rupees on a net basis on Tuesday, while domestic institutional investors bought shares worth 13.23 billion rupees ($160.09 million), according to stock exchange data.

STOCKS TO WATCH:

** Natco Pharma (NATP.NS): Drug maker invests $2 million in U.S.-based Isca Inc for 5.79% stake.

** Rail Vikas Nigam (RAIV.NS): Co emerges as the lowest bidder for projects worth 2.56 billion rupees from Maharashtra Metro Rail Corporation.

** Bharat Heavy Electricals (BHEL.NS): Co secures order for setting up 2 x 800 Mega Watt supercritical thermal power project in Chhattisgarh.

** Zee Entertainment Enterprise (ZEE.NS): Quant Mutual Fund offloads 4.815 million shares (0.5% stake) through open market transactions.

($1 = 82.6420 Indian rupees)