MUMBAI: Indian shares are expected to start lower on Wednesday in line with subdued Asian markets as investors await signs of progress on resolving the euro zone debt crisis.
Oil marketing companies including Indian Oil Corp and Bharat Petroleum Corp will be in focus after the Business Standard newspaper reported they are likely to raise petrol prices this week after a gap of four months.
Financials and automakers will be watched on release of inflation data around 0630 GMT, which should provide cues on the central bank's scheduled rate decision on Friday.
India's wholesale price index (WPI) likely rose an annual 9.6 percent in August on higher food and fuel prices, a Reuters poll showed on Monday.
Another Reuters poll of economists showed that a majority expected the Reserve Bank of India to raise its repo rate by another 25 basis points on Friday.
Car makers including Maruti Suzuki and Tata Motors are seeing a decline in demand due to high rates, as the sector is driven by a burgeoning and aspirational middle class that mostly relies on bank loans for purchases.
At 0309 GMT, Japan's Nikkei was down 0.2 percent and South Korea's Kospi was down 2.3 percent, while the MSCI's measure of Asian markets other than Japan was trading 1.2 percent lower.
The Nifty India stock futures in Singapore were up 0.1 percent.
India's main 30-share Indian benchmark fell for a third day in a row on Tuesday, ending down 0.21 percent at 16,467.44, its lowest close in two weeks.
STOCKS TO WATCH
Maruti Suzuki on a media report that majority owner Suzuki Motor will likely locate a planned new $1.3 billion car factory in India's western state of Gujarat.
Opto Circuits after the company said its unit plans to raise 10 billion rupees through an initial public offering of shares.
Pennar Industries after it won an order from Reliance Retail for installing pre-engineering steel building at the retailer's distribution centre in Pune.
Copyright Reuters, 2011
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