Indian shares set for muted start as profit-booking seen around record levels

BENGALURU, June 23 (Reuters) - Indian shares were set for a subdued start on Friday as the markets look to consolidate with benchmark indexes hovering around record levels.

Indias NSE stock futures listed on the Singapore Exchange were down 0.06% at 18,820, as of 8 a.m. IST.

The benchmark Sensex (.BSESN) hit new record highs in each of the last two sessions. The Nifty 50 (.NSEI) came within one point of its all-time high on Thursday before witnessing selling pressure at near-record levels.

Both the indexes have fallen over 0.2% so far this week, and are set to snap a four-week winning streak if the trend holds.

Analysts have flagged high valuations in domestic equities and warned that markets could see a bit of correction as indexes are near record levels as well as on fears of prolonged hawkishness from global central banks.

The Bank of England on Thursday surprised investors with a bigger-than-expected rate hike, while Swiss National Bank and Norges Bank also raised their rates, citing inflationary concerns.

Indias six-member monetary policy committee (MPC) members appeared increasingly divergent in their views on the future course of rate hikes, with some external members arguing that further tightening could hamper economic recovery, the minutes of their latest meeting showed on Thursday.

Meanwhile, foreign institutional investors sold 6.93 billion rupees ($84.6 million) worth of Indian equities on a net basis on Thursday, while domestic investors bought 2.19 billion rupees of shares, as per provisional NSE data.

Wall Street equities eked out gains overnight after Fed Chair Powell reassured that the central bank would proceed with caution, but suggested that it had not reached the end of its tightening cycle. Asian markets were down 1%.

STOCKS TO WATCH:

** EROS International Media Ltd (EROS.NS): Indian market regulator barred three company entities from the securities market for alleged misstatements in its account books .

** Tata Steel Ltd (TISC.NS): Company says it will not be able to achieve a goal to cut emissions by 2030 unless development of new technologies is accelerated, according to a Bloomberg News report.

** Vedanta Ltd (VDAN.NS): The natural resources conglomerate said news on sale of its Sterlite Copper plant in Thoothukudi are incorrect.

** Landmark Cars Ltd (LANM.NS): Private equity firm TPG Capital will likely sell 4.4 million shares, or an 11% stake, in the company through a block deal, according to a report.

** Bharat Petroleum Corporation Ltd (BPCL.NS): Petroleum products distributor said it will consider various modalities for capital infusion including rights issue.

($1 = 81.9594 Indian Rupees)