INDIA STOCKS-Indian shares set to open lower on oil spike, hawkish Fed; HDFC Bank in focus

March 19 (Reuters) - Indian shares are set to open sharply lower on Thursday as Brent crude jumped above $110 a barrel following a fresh escalation in the Iran war, while a hawkish U.S. Federal Reserve, citing persistent inflation pressures, added to growth worries.

GIFT Nifty futures GIFc1 were trading at 23,313 as of 07:12 a.m. IST, indicating the Nifty 50 .NSEI will open below Wednesday's close of 23,777.8.

Iran attacked several energy facilities across the Middle East on Wednesday, following a strike on its South Pars gas field, marking a major escalation in its war with the U.S. and Israel.

South Pars is the Iranian sector of the world's largest natural gas deposit, which Tehran shares with Qatar, a close U.S. ally, across the Gulf.

In a note earlier this month, brokerage Citi said that if Brent crude sustains at $120 per barrel for a full month, it could shave 6 basis points off India's fiscal 2027 growth and raise inflation by 21 bps.

Meanwhile, the U.S. Federal Reserve struck a hawkish tone on Wednesday as it kept key rates unchanged, citing risks from the Iran war that has driven energy prices higher.

Higher U.S. rates make emerging markets such as India less attractive to foreign investors.

Foreign portfolio investors sold Indian shares worth 27.14 billion rupees ($291.6 million) on Wednesday, marking their 14 consecutive sessions of selling, provisional data showed.

Adding to domestic pressure, HDFC Bank HDBK.NS, India's heaviest-weighted stock and largest private-sector lender, said late on Wednesday that part-time Chairman Atanu Chakraborty had resigned citing differences over "values and ethics".

The news sent its U.S.-listed shares HDB.N tumbling more than 7%.

STOCKS TO WATCH

Shares of oil marketing companies, paint makers, tyre makers and aviation companies will be in focus as a surge in crude oil prices can hit their earnings

Natco Pharma NATP.NS says board to meet on March 24 to consider demerger of agrochemicals division

Ahluwalia Contracts AHLU.NS secures contract worth 3.93 billion rupees from Airports Authority of India for a greenfield airport in Rajasthan state

($1 = 93.0680 Indian rupees)