BENGALURU, March 21 (Reuters) - Indian shares were set to open higher on Tuesday, tracking a rebound in global equities on temporary relief from the rescue of financial heavyweight Credit Suisse, although contagion fears in banking cast a shadow.
India's NSE stock futures listed on the Singapore exchange were up 0.41% at 17,094.50 as of 8:17 a.m. IST.
U.S. and European equities rose on Monday as concerns over the global banking crisis eased temporarily due to the rescue of Credit Suisse.
The MSCI's broadest index of Asia-Pacific shares outside Japan were up 0.59%.
The quick execution of Credit Suisse's takeover is a temporary relief but worries of contagion in global banking remain, analysts said.
U.S. lenders Silicon Valley Bank and Signature Bank collapsed earlier this month, while shares of First Republic Bank continue to tumble on fears that it will need a second rescue to stay afloat. Last week, U.S. banks pumped $30 million in deposits into First Republic Bank.
Market participants are also keeping a watch on the U.S. Federal Reserve's policy decision on Wednesday. Futures on interest rates are pricing in a 72.3% chance of a 25 basis-point Fed rate hike.
Foreign institutional investors (FII) extended their selling streak to an eighth straight session on Monday, selling a net 25.46 billion rupees of equities.
Stocks to Watch:
** RBL Bank: RBI imposes a penalty of 22.7 million rupees on the lender for non-compliance with rules on loan recovery agents.
** Mangalore Refinery, Chennai Petroleum , Oil India, ONGC, Reliance Industries: Government cuts windfall tax on domestic production of crude petroleum to 3,500 rupees per tonne from 4,400 rupees per tonne and raises export duty on diesel to 1 rupee per litre from 0.5 rupees.
** HDFC Asset Management Company: GQG Partners sells 2.48 million shares while SBI Mutual Fund buys 4.73 mln shares via open market transactions.
($1 = 82.5200 Indian rupees) (Reporting by Bharath Rajeswaran in Bengaluru; Editing by Dhanya Ann Thoppil)
