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Indian shares are set for a muted start on Monday, tracking broader Asian peers as investors await key inflation readings from the United States, Japan and Europe for clues on future interest rate moves.

India's GIFT Nifty was trading at 22,222.50 as of 8:03 a.m. IST, indicating that the NSE Nifty 50 will open only marginally above its Friday close of 22,212.70.

The blue-chip Nifty and BSE Sensex gained about 1% each last week, buoyed by a rise in heavyweight financials.

"Traders are awaiting new catalysts with the corporate earnings season ending," said Prashanth Tapse, senior vice president of research at Mehta Equities.

Concerns over stretched valuations linger on the market and could prompt bouts of profit booking, Tapse added.

Asian markets were off to a subdued start, with the MSCI Asia ex-Japan index dropping 0.4% ahead of a key U.S. inflation reading and commentary from Federal Reserve officials, which could influence its rate trajectory. [MKTS/GLOB]

Markets have already pushed out the likely timing of a first Fed rate cut from March to June. Inflation data from Japan and the European Union is also due later in the week.

Foreign investors net bought shares worth 12.76 billion rupees (around $154 million) on Friday. Domestic institutional investors added shares worth a net 1.77 billion rupees.

STOCKS TO WATCH:

** Kotak Mahindra Bank: Zurich Insurance will buy a 70% stake in private lender's general insurance arm for 55.60 billion rupees upfront.

** Reliance Industries: Company signed a binding pact with Walt Disney to merge their media operations in India, Bloomberg reported citing sources.

** Alembic Pharmaceuticals: Company fully resumed its manufacturing operations at Sikkim plant.

** Sanofi India: Company reported rise in profit in December quarter, recommended a final dividend of 117 rupees per share.

($1 = 82.8870 Indian rupees)