BENGALURU, Aug 1 (Reuters) - Indian shares are set to

hit all-time highs on Thursday, tracking a global rally after

the U.S. Federal Reserve Chair Jerome Powell hinted at a

possible interest rate cut in September, although Infosys could

be a drag on the market.

The GIFT Nifty was at 25,105.5 points as of 8:10

a.m. IST, suggesting the Nifty 50 will open above its

Wednesday's close of 24,951.15.

Asian markets joined the rally that started on Wall Street

overnight after the Fed held interest rate steady as expected

but Powell spoke of a "growing sense of confidence" that rate

cuts could start in September, also as expected.

"It's now almost certain that there will be a rate cut in

the U.S. in September, which is very good from an emerging

markets perspective, in terms of foreign inflows," said Pramod

Gubbi, co-founder of Marcellus Investment Managers.

"For now, it means higher foreign inflows into India which

will add to liquidity comfort."

In India, IT companies in particular could rally after

months of pressure due to lower spending by U.S. clients.

On the day, however, Infosys, India's No.2 IT

company, might come under some pressure as it got a $4 billion

tax bill related to services in some of its overseas branches.

The company's U.S.-listed shares fell 2.12% overnight.

STOCKS TO WATCH

** Tata Steel posted a rise in quarterly profit

and set aside 173.47 billion rupees ($2 billion) as contigent

liability after a recent court judgement that upheld the Odisha

state government's power to levy cess on minerals.

** Coal India beat quarterly profit estimates on

higher volumes and lower costs.

** Bharat Forge said its unit secured a defence

license from the government.

** Vedanta got approval from the stock exchanges

to split into six independent companies.

($1 = 83.6940 Indian rupees)