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Indian shares are set to open lower on Tuesday, with higher-for-longer global interest rate expectations driving continuous foreign outflows from the domestic market amid subdued global sentiment.

India's GIFT Nifty was down 0.4% at 19,655 points at 7:53 a.m. IST on the NSE International Exchange.

On Monday, the Nifty 50 and the S&P BSE Sensex closed mostly unchanged at 19,674.55 points, and 65,958 points, respectively. The benchmarks have fallen nearly 3% after hitting all-time highs in mid-September.

The U.S. Federal Reserve's hawkish tone last week drove a message to markets that the interest rates will stay elevated for longer into next year. Higher interest rates dry up liquidity from the markets, increasing the cost of capital.

Foreign investors have been net sellers so far this month, offloading shares worth $1.36 billion, as of Sept. 22 after pouring in over $15 billion into Indian equities this year.

On Monday, foreign institutional investors sold 23.33 billion rupees worth of shares, while domestic investors bought 15.79 billion rupees worth of shares, as per provisional exchange data.

STOCKS TO WATCH:

** State Bank Of India: Reserve Bank Of India imposed a monetary penalty of 13 million rupees on the bank

** Strides Pharma Science: Strides Pharma approves demerger of CDMO business into Stelis Biopharma

** D B Realty: D B Realty entered share purchase agreements to acquire shares of Bamboo Hotel Global Centre (Delhi), Goan Hotels & Realty, BD and P Hotels