India's GIFT Nifty on the NSE International Exchange was down about 0.1% at 20,080.5 points, as of 8.20 a.m IST.
Markets in India were closed on Tuesday on account of a public holiday. On Monday, the Nifty 50 and S&P BSE Sensex fell 0.3% and 0.4%, respectively.
HDFC Bank on Monday said its gross non-performing assets will likely increase as of July 1, after its merger with HDFC.
Separately, investors will focus on stocks that have exposure to the Canadian pension fund (CPP) after India's relationship with Canada soured on Tuesday. CPP had increased its investment in Indian markets to about $15 billion, as of the fiscal year ending March.
Investors also expect the Fed to hold interest rates steady at the conclusion of its two-day meeting on Wednesday, but with a hawkish view.
Elevated Brent crude prices could dent investor sentiment in India, as the country is a major net oil importer and any significant surge in oil prices will weigh on its import bill and current account deficit.
Foreign investors sold 12.37 billion rupees ($148.64 million) worth of shares on a net basis on Monday, while their domestic counterparts bought 5.53 billion rupees worth of equity, according to stock exchange data.
STOCKS TO WATCH
** Bharat Dynamics : Bharat Dynamics Signed Contract Worth 2.91 Billion Rupees With IAF
** Thyrocare Technologies : Thyrocare Technologies Enters Subscription Agreement With Kastipharm
** Tata Motors : Tata Motors to hike commercial vehicle prices for third time in 2023.
($1 = 83.2230 Indian rupees)
(Reporting by Archishma Iyer in Bengaluru; Editing by Sonia Cheema)
