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 India's benchmark Nifty is set to open at new record high on Wednesday and extend its record-breaking surge, while Asian markets rose after China followed Japan in keeping interest rates unchanged.

India's GIFT Nifty was trading at 21,611 as of 7:58 a.m. IST, indicating the Nifty 50 is likely to open about 150 points above Tuesday close of 21,453.10.

The Nifty hit a record high of 21,505.05 on Tuesday, extending its streak of scaling new all-time highs to ten of 13 sessions in December so far.

The blue-chip index has gained 6.56% in the period, and is on course for its best month since July 2022.

The rise has been supported by strong domestic macroeconomic data, lower oil prices, sustained inflows from mutual fund investors, record fortnightly foreign purchases and improving U.S. rate outlook.

Asian shares climbed after China's central bank left its benchmark lending rates unchanged as expected.

On Tuesday, the Bank of Japan kept rates steady and maintained its dovish policy guidance, while giving no indication of an end to its negative interest rate regime.

Wall Street equities closed higher overnight, while U.S. Treasury yields fell as a rate cut fever lingered despite push back from several Federal Reserve officials. [MKTS/GLOB]

The odds of a 25 basis points rate cut in March 2024 rose to 68.4% on Wednesday, compared to 39.7% a week ago, according to the CME FedWatch tool.

Brent crude futures rose to $79 per barrel, as attacks by Yemen's Iran-aligned Houthi militants on ships in the Red Sea disrupted maritime trade, but are still down 7.79% for the year. [O/R]

STOCKS TO WATCH:

** Apollo Tyres: Foreign portfolio investor White Iris Investment sells 4.5% stake through open market transactions. Nippon India Mutual Fund picks up 1.9% stake.

** IndusInd Bank: Private lender is likely to sell 2.86% stake in Nippon AMC via block deals, according to reports.

** Embassy Office Parks REIT: Blackstone to sell its entire 23.59% stake valued at $833 million via block deals, according to a term sheet seen by Reuters.

** Bharat Petroleum Corp Ltd: Company to set up polypropylene unit at Kochi Refinery in Kerala at a gross project cost of 50.44 billion rupees.