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India's equity benchmarks are likely to open muted on Thursday, but foreign outflow jitters and a depreciating rupee could continue to dampen sentiments.

GIFT Nifty futures were trading at 26,073.5 as of 07:40 a.m. IST, indicating that the Nifty 50 will open near Wednesday's close of 25,986.

Foreign portfolio investors sold Indian shares worth 32.07 billion rupees ($355.7 million) on Wednesday, per provisional data, in their fifth consecutive session of selling.

The 50-stock Nifty has lost 0.9% in the last four sessions and the BSE Sensex shed 0.7%, after hitting record highs for the first time in 14 months last week.

Meanwhile, the Indian rupee extended its eight-month fall to breach the key psychological level of 90 and plunged to an all-time low against the dollar on Wednesday, as weak trade and investment flows and a corporate rush to hedge against weakness sapped the currency.

Investors are now awaiting the Reserve Bank of India's policy decision on Friday.

Robust GDP growth data for the September quarter released last week raised questions about the need for lower rates. A Reuters poll conducted before the growth data was released had projected a 25-basis-point rate cut this month.

STOCKS TO WATCH

** At least 150 flights operated by Indigo were cancelled and dozens of others were delayed on Wednesday due to a shortage of pilots after new government rules to fight fatigue and boost rest periods for pilots kicked in, complicating roster management

** ITC and Godfrey Phillips will be in focus as India's parliament approved a new tax law that experts say could increase the price of cigarettes

** Pine Labs posts consolidated profit of 59.7 million rupees for the September quarter against a year-ago loss, along with an increase in revenue

($1 = 90.1660 Indian rupees)