Indian shares set to open lower with HDFC, Fed decision in focus

Sept 20 (Reuters) - Indian shares are set for a weaker opening on Wednesday, with heavyweight HDFC Bank in focus after the countrys top private lender flagged impact to its asset quality, while investors await a key policy decision from the U.S. Federal Reserve.

Indias GIFT Nifty (.GIFc1) on the NSE International Exchange was down about 0.1% at 20,080.5 points, as of 8.20 a.m IST.

Markets in India were closed on Tuesday on account of a public holiday. On Monday, the Nifty 50 (.NIFTY50) and S&P BSE Sensex (.BSESN) fell 0.3% and 0.4%, respectively.

HDFC Bank (HDBK.NS) on Monday said its gross non-performing assets will likely increase as of July 1, after its merger with HDFC.

Separately, investors will focus on stocks that have exposure to the Canadian pension fund (CPP) after Indias relationship with Canada soured on Tuesday. CPP had increased its investment in Indian markets to about $15 billion, as of the fiscal year ending March.

Investors also expect the Fed to hold interest rates steady at the conclusion of its two-day meeting on Wednesday, but with a hawkish view.

Elevated Brent crude prices could dent investor sentiment in India, as the country is a major net oil importer and any significant surge in oil prices will weigh on its import bill and current account deficit.

Foreign investors sold 12.37 billion rupees ($148.64 million) worth of shares on a net basis on Monday, while their domestic counterparts bought 5.53 billion rupees worth of equity, according to stock exchange data.

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($1 = 83.2230 Indian rupees)