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 Indian shares are set to open flat on Wednesday, with caution likely to prevail as U.S. presidential election results trickle in.

The Gift Nifty futures were trading at 24,268, as of 07:48 a.m. IST, indicating that the benchmark Nifty 50 will open near Tuesday's close of 24,213.3.

Other Asian markets traded lower, with the MSCI Asia ex-Japan index shedding 0.4%, as early results from the U.S. presidential election suggested the race remained too close to call.

Republican Donald Trump won eight states while Democrat Kamala Harris captured three states and Washington, D.C., Edison Research projected, but critical battleground states were unlikely to be called for hours or even days.

A Trump win could lead to lower corporate tax rates in the United States, and is expected to boost spending and benefit several equity sectors in India, according to analysts.

A Harris victory, meanwhile, is seen as a sign of policy continuity, a neutral-to-mildly-positive outcome for Indian stocks, they said.

"Clarity on the outcome of U.S. election will influence markets trajectory in this session," said Deepak Jasani, head of retail research, HDFC Securities.

Indian shares recouped losses to log gains on Tuesday, led by banks, as investors sought safety in segments with cheaper valuations.

The market's recovery in the previous session was driven by short-covering ahead of the U.S. results, but caution persists amid weak earnings and lackluster quarterly results.

Foreign institutional investors sold domestic equities for the 27th consecutive session, offloading stocks worth 25.69 billion Indian rupees, on a net basis.

The benchmark Nifty is about 8% below the all-time high hit on Sept. 27, weighed by record monthly foreign outflows in October as investors directed funds to China from India on Beijing's stimulus measures and cheaper valuations.

The moderation in corporate earnings growth for the September quarter has also weighed on the markets.

STOCKS TO WATCH

** Drugmaker Dr Reddy's Laboratories misses September-quarter profit view on weak U.S. demand

** Mankind Pharma tops second-quarter profit view on higher demand for chronic drugs

** Titan sees drop in second-quarter profit as gold import tax cut drives inventory losses

** Initial public offering of Swiggy will open for subscription from Wednesday until Nov. 8, and the stock is expected to list on domestic bourses on Nov. 13