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Indian shares are set for a muted open on Tuesday after scaling new highs in each of the previous three sessions, as analysts cautioned of profit booking at higher levels.

India's GIFT Nifty on the NSE International Exchange was up 0.04% at 19,447.50, as of 8:08 a.m. IST.

The blue-chip Nifty 50 and Sensex indexes hit fresh record highs on Monday, aided by broad sectoral gains, with financial services in the lead.

Three of the top 10 constituents of Nifty 50, ITC, Larsen & Toubro and Axis Bank are hovering around record highs.

Financials, bank, auto, fast moving consumer goods (FMCG) indexes are also at all-time high levels.

The smallcaps and midcaps clocked new 52-week and record highs as well.

Both Nifty 50 and Sensex are in an overbought zone, with the technical indicator relative strength index (RSI) above 70 in the last three sessions for Nifty and two for Sensex.

"Due to temporary overbought conditions, we could see some profit booking at higher levels," said Shrikant Chouhan, head of research (retail) at Kotak Securities.

On Monday, foreign institutional investors bought 19.96 billion rupees ($243.7 million) of Indian equities on a net basis, while domestic investors sold 3.38 billion rupees of shares, as per provisional NSE data.

Wall Street equities edged higher on Monday, but mixed economic data weighed on sentiment and capped the gains. Asian equities remained subdued. [MKTS/GLOB]

STOCKS TO WATCH:

** Lupin: Co receives approval from U.S. FDA for Cyanocobalamin nasal spray, which has an estimated annual sales of $69 million in the United States.

** Bajaj Finance: Co says new loans booked during June quarter grew 34% Y/Y to 9.94 million.

** Avenue Supermarts: Co says standalone revenue from operations for June quarter at 115.85 billion rupees, up 18.1% Y/Y.

** Vedanta: Co's total aluminium production up 2% Y/Y in June quarter.

($1 = 81.9127 Indian Rupees)