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 Indian shares are set for a muted start on Wednesday on fears of a prolonged high-interest rate regime in the United States after data showed consumer inflation in January remained sticky in the world's largest economy. India's NSE stock futures listed on the Singapore exchange were down 0.26% at 17,881.50 as of 7:52 a.m. IST.

Wall Street equities were mixed on Tuesday, after data showed that retail inflation in the U.S. rose 6.4% year-on-year in January, above the expectations of 6.2%. Consumer prices rose 0.5% month-on-month.

The higher-than-expected inflation data heightened fears of further rate hikes by the U.S. Federal Reserve in its efforts to tame inflation.

Asian markets declined, with the MSCI's broadest index of Asia-Pacific shares outside Japan losing 1.35%. [MKTS/GLOB]

Meanwhile, the ongoing uncertainty in Adani Group stocks could continue to overshadow domestic equities.

The conglomerate, on Tuesday, said the group companies did not face any material refinancing risk or near-term liquidity issues in an attempt to calm frayed investor nerves after the critical report by U.S. short-seller Hindenburg on its business practices on Jan. 24.

Foreign institutional investors bought a net 13.05 billion rupees ($157.5 million) worth of equities on Tuesday. FIIs have remained net buyers over the last three sessions. They have sold 442.51 billion rupees of shares thus far this year.

STOCKS TO WATCH ** Apollo Hospitals: Co posts fall in consolidated net profit in third quarter as digital health business weighs.

** ONGC: Co reports rise in quarterly profit on higher crude, gas prices.

** Biocon: Co reports consolidated net loss in third quarter.

** Prestige Estate Projects: Co reports a surge in third-quarter profit.

** Vodafone Idea: Co reports wider net loss in third quarter.