India's NSE stock futures listed on the Singapore Exchange were down 0.34% at 18,809.50, as of 8:10 a.m. IST.

Wall Street equities were closed on Monday for a holiday. Powell is scheduled to deliver congressional testimonies on monetary policy on Wednesday and Thursday. Traders are pricing in a nearly 75% chance of a 25 basis points rate hike by the Fed at its July meeting, after a pause in June.

European shares fell ahead of Bank of England's monetary policy decision, scheduled for later this week.

Asian markets were mostly lower as investors digested China's decision to slash its one-year and five-year loan prime rate, for the first time in 10 months. The move is aimed at aiding growth amid weak macro data, which fueled concerns of an economic recovery.[MKTS/GLOB]

The Nifty and Sensex declined on Monday, dragged by a broad-based slide across sectors. Among broader peers, midcaps are at a record level, while smallcaps are at a 52-week high.

Both foreign institutional and domestic investors sold Indian equities on Monday, as markets retreated from near record levels.

STOCKS TO WATCH

** Interglobe Aviation: Airbus wins record 500-plane order from company.

** IIFL Securities: India's market regulator bans the stockbroking unit of company from onboarding any new client for two years, citing alleged misuse of client funds.

** HDFC Asset Management Company: UK's abrdn to sell shares in company, according to media reports.

** Housing Development Finance Corporation: Co signs definitive deal to divest 90% stake in its education loan unit HDFC Credila to a consortium led by private equity firms EQT-BPEA for $1.26 billion.

(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sonia Cheema)