BENGALURU (Reuters) - Indian shares are set for a muted open on Thursday, after the Federal Reserve's latest policy minutes reflected disappointment in recent inflation data, dampening hopes of an early rate cut.

The Gift Nifty was trading at 22,646 as of 7:52 a.m. IST, indicating the Nifty 50 will open near Wednesday's close of 22,597.80.

Asian markets opened lower, with the MSCI Asia ex-Japan index dropping 0.75%.

All three major U.S. stock indexes ended lower overnight, after the minutes of the latest Fed policy meeting indicated that the U.S. central bank officials acknowledged disappointment over recent inflation readings, signalling that interest rates could remain higher for longer. [MKTS/GLOB]

U.S.-rate cut sensitive Nifty information technology stocks, which rose 0.7% in the previous session, would be in focus.

The Indian shares' volatility index has been hovering around 19-month highs as worries about the election results and foreign selling pressure weigh on investor sentiment.

"Markets may underperform in the short term as they wait for the election outcome, with FIIs (foreign institutional investors) staying on the sidelines," Vinod Nair, Research Head, Geojit Financial Services said.

Foreign investors have sold Indian shares worth 279.38 billion rupees ($3.35 billion) so far in May, the highest since January 2023.

STOCKS TO WATCH

** Grasim Industries: Grasim Industries: Aditya Birla Group-owned company reported a net loss in the fourth quarter hurt by an impairment charge as its unit temporarily idled operations.

** Power Grid Corporation of India: State-run energy transmission company posted a fall in fourth-quarter profit, hit by a weak performance in its primary power transmission business.

** Jubilant FoodWorks: Domino's India franchisee reported a rise in fourth-quarter profit benefitting from one-time gain and more store openings.

($1 = 83.2990 Indian rupees)

(Reporting by Dimpal Gulwani in Bengaluru; Editing by Mrigank Dhaniwala)