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Indian shares are set to open higher on Tuesday following a relief rally in Asian markets as U.S. central bank officials soothed investor nerves after a brutal selloff in the previous session.

The GIFT Nifty was at 24,318 points as of 8:26 a.m. IST, suggesting the Nifty 50 will open above its Monday's close of 24,055.6.

The benchmark Nifty 50 and S&P BSE Sensex logged their worst session in two months on Monday amid a global sell-off on fears of a U.S. recession.

Asian markets recovered from the drop, with the MSCI Asia ex-Japan index rising 1%. Wall Street equities logged losses overnight. [MKTS/GLOB]

Strong U.S. services data on Monday eased some of the fears of recession while key Federal Reserve officials said Friday's weak labour market data did not signal a recession, boosting investor sentiment.

"Long-term investors should not be deterred by such global uncertainties," said A Balasubramanian, managing director and chief executive at Aditya Birla Sun Life Asset Management Company.

"Market downturns should be viewed as an opportunity and capitalising on dips can be beneficial," Balasubramanian added.

Shares of Bharti Airtel will be in focus after the telecom services provider beat June quarter profit estimates.

ONGC could also rise after it topped first quarter profit estimates on strong fuel demand.

Foreign institutional investors (FIIs) sold shares worth 100.74 billion Indian rupees on Monday while domestic institutional investors bought Indian shares worth 91.56 billion rupees, on a net basis.