India's GIFT Nifty on the NSE International Exchange was up 0.09% at 19,607.50, as of 7:56 a.m. IST.

Asian equities were subdued, with the MSCI Asia ex-Japan adding 0.05%. [MKTS/GLOB]

The Reserve Bank of India will also announce its policy decision on Thursday. The central bank kept rates unchanged in April and June, after hiking them by 250 basis points in the fiscal 2023.

Both the Nifty 50 and Sensex have logged losses for two weeks in a row. Foreign institutional investors (FIIs) have turned net sellers of Indian shares for six sessions in a row. FIIs sold 5.56 billion rupees ($67.25 million) worth of shares on Friday.

"FII trend in domestic equities too could be choppy in the near term," said Shrikant Chouhan, head of research (retail) at Kotak Securities.

"However, with India's strong macroeconomic numbers, and Morgan Stanley upgrading India to overweight, it would be difficult for overseas investors to ignore India despite higher valuation concerns."

STOCKS TO WATCH:

** Britannia Industries: Biscuit maker's profit rises 36% on steady demand for packaged foods.

** Bank of Baroda: State-owned lender's net profit nearly doubles in June quarter, asset quality improves.

** ICICI Bank: Private sector bank gets approval from the Reserve Bank of India to increase the shareholding in ICICI Lombard General Insurance Company up to 4%.

** Gujarat Fluorochemicals: Co reports fall in consolidated profit in June quarter.

($1 = 82.6740 Indian rupees)

(Reporting by Bharath Rajeswaran and Manvi Pant in Bengaluru; editing by Eileen Soreng)