Indian shares were set to dip for a third straight session on Thursday, as U.S. recession and concerns over the pace of Federal Reserve's rate hikes dampened sentiment.

India's NSE stock futures listed on the Singapore exchange were down 0.07% at 18,658.50 as of 8:05 a.m. IST.

The blue-chip indexes declined on Wednesday, after Reserve Bank of India struck a hawkish note after announcing an increase in its key lending rate and reiterated its focus on taming stubbornly high inflation.

U.S. worker productivity data for the third quarter beat forecasts on Wednesday, muddying a debate on the trajectory of Fed's rate hikes. The latest data followed better-than-expected U.S. services industry activity numbers which came on Monday, signalling strength in the world's largest economy.

Wall Street equities slid after the data overnight, and Asian shares were mixed in early Thursday trading, with the MSCI Asia ex Japan index rising 0.35%.

Offsetting the losses in domestic markets could be the slide in oil prices, which fell to the lowest in 2022, driven by rise in U.S. fuel stocks. A slide in crude prices is a positive for oil importing countries like India, where crude accounts for the bulk of the import bill.

Foreign institutional investors sold a net 12.42 billion rupees ($151.09 million) worth of equities on Wednesday, while domestic investors bought net 3.89 billion rupees ($47.32 million) worth of shares, as per provisional NSE data.

Stocks To Watch:

** Macrotech Developers: Co plans to raise $450 million via qualified institutional placement that will see controlling family sell 7% stake.

** Axis Bank: Lender to raise up to 120 billion Indian rupees through sale of Basel III compliant Tier-II bonds.

** TCS: BT Group's digital unit announces partnership with Co for strategic tech build.

** HCL Tech: Co to team up with Intel and Mavenir to deliver 5G enterprise technology solutions. ($1 = 82.2040 Indian rupees) (Reporting by Bharath Rajeswaran and Akansha Victor in Bengaluru; Editing by Eileen Soreng)