(Reuters) Indian shares were set to open lower on Wednesday amid weaker global cues, as caution prevailed across markets ahead of the U.S. Federal Reserve's rate decision later in the day.
India's NSE stock futures listed on the Singapore exchange were down 0.43% at 18,141.50, as of 7:53 a.m. IST.
Wall Street equities lost over 1% overnight, dragged by banking and energy stocks ahead of the Fed rate decision, while Asian equities remained subdued.
The odds of the Fed hiking rates by 25 basis points is at 90.3%.
The S&P BSE Sensex has risen 3% over the last eight sessions, and closed at the highest level in over four months on Tuesday.
The Nifty 50 has risen for six consecutive sessions amid corporate earnings for March quarter, and is in overbought territory, with a relative strength index of 73.
While the earnings and commentary on client spending from information technology companies were lacklustre, high-weightage financials have reported mostly strong results, two analysts said.
The return of foreign institutional investors (FIIs) has also supported recent uptick in Indian markets. FIIs extended their buying streak for the fourth session on Tuesday, adding equities worth 19.97 billion rupees ($244.2 million).
"We may see some consolidation due to caution ahead of the outcome of Fed meeting," said Ajit Mishra, vice president - technical research at Religare Broking.
"However the tone is likely to be positive, so maintain a buy-on-dips approach."
The sharp decline in crude oil prices due to concerns about U.S. economy on debt default negotiations is a positive for oil importers like India, where crude constitutes a significant share in the country's import bill.
Titan Company Ltd, ABB India Ltd, Petronet LNG Ltd, MRF Ltd, Tata Chemicals Ltd, Adani Wilmar Ltd, Godrej Properties Ltd, and Havells India Ltd are among the companies reporting results on Wednesday.
Stocks to watch
** Tata Steel Ltd: Co reports 83% YoY slide in net profit in Q4.
** Ambuja Cements Ltd: Profit rises in the March quarter on jump in infra spending by government and low raw material costs.
** Bharti Airtel Ltd: Co signs binding term sheet with Dialog, Axiata group to combine operations in Sri Lanka.
** B L Kashyap and Sons Ltd: Co secures new order, aggregating to 2.38 bln rupees.
($1 = 81.7770 Indian rupees)