The BSE Sensex is expected to fall for the second consecutive session on Tuesday, with investors wary ahead of the election results in Uttar Pradesh.
The results expected by noon would give clues on the Congress-led coalition's ability to push through stalled reforms to boost flagging growth in Asia's third-largest economy.
Market sentiment is also likely to be dented by weaker regional markets, as slowing economies in China and Europe and tension over Iran triggered profit booking after the recent rally.
Tata Communications will be watched after sources told Reuters the company is seeking $2 billion in term loans to finance a potential bid for London-listed Cable & Wireless Worldwide.
Hindalco Industries will also be on the radar after its U.S. unit and aluminum products maker Novelis Inc said it was selling three foil-manufacturing plants in Europe to focus on premium product markets.
At 08.20am (IST), the MSCI's broadest index of Asia Pacific shares outside Japan was down 1.2 per cent, while Japan fell 0.4 per cent and South Korea was down 1.1 per cent.
The Nifty India stock futures in Singapore were down 0.5 percent.
India's benchmark 30-share index fell 1.55 per cent on Monday to 17,362.87, its lowest close in more than a month.
STOCKS TO WATCH
* Kingfisher Airlines is likely to rise after the Business Standard reported private equity firms TPG, Cerberus Capital and Blackstone have shown interest to buy stake in the debt-crippled carrier. Kingfisher spokesman didn't answer Reuters' call for comments.
* Himadri Chemicals will be watched after it told Reuters late on Monday it was interested in buying bigger European peer Ruetgers Group, which is being put up for sale by private equity owner Triton.
Copyright @ Thomson Reuters 2012
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