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 Indian shares were set to open higher on Wednesday, with the benchmark Nifty 50 and Sensex hovering around record highs, after data showed retail inflation eased and industrial output rose.

India's GIFT Nifty on the NSE International Exchange was up 0.22% at 20,073.50 at 7:51 a.m. IST.

The benchmark Nifty 50 and the S&P BSE Sensex closed little changed in a volatile session on Tuesday.

Data released after the bell showed that India's retail inflation eased in August to 6.83%, lower than the estimate of 7%, but still above the upper end of the Reserve Bank of India's 2%-6% target range, aided by a moderation in food prices.

Industrial output rose at its fastest pace in five months in July to 5.7%, supported by strong mining and electricity activity.

The blue-chip Nifty 50 has hit record highs over the last two sessions, while the S&P BSE Sensex is less than 1% shy of the all-time high hit on July 20.

Small-caps and mid-caps lost 4.1% and 3.07%, respectively, recording their steepest intraday fall in 2023 on Tuesday, as selling pressure emerged at near-record-high levels.

Foreign institutional investors (FIIs) sold 10.47 billion rupees ($126.38 million) worth of shares on a net basis on Tuesday, while their domestic counterparts bought 2.59 billion rupees worth of shares, exchange data showed.

Wall Street equities closed lower overnight ahead of key inflation data, due later today. Asian markets were subdued. [MKTS/GLOB]

Brent crude futures jumped above $92 per barrel to a 10-month high, on tightening supply and fears of supply disruption due to storms in Libya.

A rise in crude oil prices is a negative for importers like India, where the commodity accounts for a significant share of the import bill. [O/R]

STOCKS TO WATCH:

** Vakrangee: Co enters into a binding term sheet with private equity investor International Finance Corporation to buy an additional 8.8% stake in Vortex Engineering.

** IRCTC: Co signs a deal with NBCC's unit to design and execute interior works for its office space at World Trade Centre, Delhi; tentative cost of the order is 314 million rupees.

** KEC International: Co secures new orders worth 10.12 billion rupees.

** NTPC: Company completes trial operation of a unit at Telangana State Super Thermal Power Project; installed capacity rises to 57,838 Mega Watt.

($1 = 82.8470 Indian rupees)