BENGALURU (Reuters) - Indian shares are set to open flat on Tuesday, after the markets took a breather in the previous session following a rally, while investors await key U.S. inflation reading and the Federal Reserve's policy decision and commentary regarding rate cuts.

The GIFT Nifty traded at 23,288.50 points, as of 0809 a.m. IST, indicating that the Nifty will open near its Monday close of 23,259.20.

Asian markets opened lower on the day, with the MSCI Asia ex-Japan index shedding 0.7%.

Wall Street equities settled at record highs overnight, ahead of the Fed's policy decision and consumer price inflation data on Wednesday. [MKTS/GLOB]

India's Nifty 50 and Sensex on Monday settled 0.13% and 0.27% lower, respectively, after rising about 3.5% each in the election results week, in which they closed at record-high levels.

There is indecisiveness between the bulls and bears after the sharp rally last week, according to two traders.

"Markets are taking a break after a busy week. We feel it is healthy if Nifty spends some time around the current levels, after experiencing extreme swings last week," said Ajit Mishra, senior vice president of research at Religare Broking.

Foreign institutional investors bought Indian shares worth 25.72 billion rupees ($307.98 million) on a net basis, while domestic institutional investors also purchased shares worth 27.64 billion rupees on Monday.

FIIs have been net buyers for two sessions in a row, after a three-session selling streak last week, which included a record 124.36-billion-rupee sale on the day of the election results on June 4.


** Raymond: Company said Raymond Realty bagged second redevelopment project in Bandra East, which is estimated to generate a revenue of more than 20 billion rupees.

** PTC Industries: Company joined special purpose vehicle as part of government's "Make in India' drive for defence, aerospace sector enhancement.

** Interglobe Aviation: Large shareholder InterGlobe Enterprises is set to sell a 2% stake in the budget airline, according to reports.

($1 = 83.5120 Indian rupees)

(Reporting by Kashish Tandon and Bharath Rajeswaran in Bengaluru; Editing by Sherry Jacob-Phillips)