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 Indian shares are set for a muted start on Tuesday, tracking weakness in Asian peers after strong U.S. economic data and Federal Reserve's recent commentary dampened hopes of early rate cuts in the world's largest economy.

India's GIFT Nifty was trading at 21,814.50 points as of 8:08 a.m. IST, suggesting the NSE Nifty 50 will open near its Monday close of 21,771.70.

Asian markets, with the exception of China which jumped on measures to limit risks involving pledged shares and margin financing, were subdued while Wall Street equities closed lower overnight. [MKTS/GLOB]

The comments by Fed Chair Jerome Powell over the weekend, pushing back against the prospect of near-term rate cuts, and strong U.S. services sector growth weighed on the sentiment.

Indian shares closed lower in a volatile session on Monday, amid a pullback in financials after a recent rally.

"Domestic equities have started the week on a subdued note. Indications are in favour of consolidation to continue," Ajit Mishra, senior vice president of technical research at Religare Broking, said.

Foreign portfolio investors (FPIs) bought a net 5.19 billion rupees ($62.5 million) worth of shares on Monday while domestic institutional investors sold stocks worth 11.89 billion rupees on a net basis, according to exchange data.

STOCKS TO WATCH:

** Bharti Airtel: Company missed third-quarter profit view as costs outweigh subscriber growth.

** One 97 Communications: Company denied reports of probe or violation of foreign exchange rules.

** Ashok Leyland: Company beat December quarter profit view helped by high demand, low costs.

** Key results on Tuesday: Britannia Industries, JK Tyre & Industries, FSN E-Commerce Ventures.

($1 = 83.0210 Indian rupees)