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Indian shares are set to open lower on Wednesday, tracking a slide in global equities after U.S. Federal Reserve chair Jerome Powell reiterated the likelihood of aggressive rate hikes to tackle inflation.

India's NSE stock futures listed on the Singapore exchange were down 0.74% at 17,721.50, as of 7:43 a.m. IST.

All three major Wall Street indexes fell more than 1% on Tuesday after Powell's testimony before the U.S. Congress. The semi-annual, two-day monetary policy testimony will continue on Wednesday.

Powell said the strong economic data raised the possibility of prolonged and higher-than-expected interest rate hikes.

The expectations of a 50 basis point (bps) increase in the federal funds target rate at the upcoming meeting have now risen above 70%. [.FEDWATCH]

Asian markets too declined on Wednesday, with the MSCI's broadest index of Asia-Pacific shares outside Japan losing 1.38%. [MKTS/GLOB]

Indian shares had extended gains for a second session in a row on Monday, as investment in the Adani group of companies lifted sentiment. Markets were closed on Tuesday.

Foreign institutional investors (FII) bought a net 7.21 billion Indian rupees worth of equities on Monday, extending their buying streak for the third session in a row.

STOCKS TO WATCH ** Allcargo Logistics: Co gets board approval to buy 38.87% stake in its partners in contract logistics business, for 3.73 billion rupees.

** Indraprastha Gas: Co signs joint venture agreement with Genesis Gas to set up smart meter manufacturing plant for capital expenditure of 1.10 billion rupees.

** NBCC India: Co gets work orders worth 5.41 billion rupees.

** Zydus Lifesciences: Co gets final approval from U.S. drug regulator for lenalidomide capsules, used for treating various types of cancers.

** HDFC Bank: Co's non-bank lending unit HDB Financial Services flags data breach at one of its service providers which processes customer information.

($1 = 81.6800 Indian rupees)