The markets are likely to start the day off in the red on the back of negative global cues. The SGX Nifty was down 10 points at 5,904 at 700 am Indian Standard Time.
Investors may also remain cautious ahead of FDI vote in Parliament that will test the Congress-led UPA government's ability to push through key reforms.
According to technical analysts, the NSE index is likely to seek support around 5,855-5,845, while face resistance around 5,890-5,900.
U.S. stocks struggled to extend the previous week's gains, dropping on Monday as disappointing U.S. factory numbers curbed optimism over China's economic growth.
Asian shares dipped on Tuesday after U.S. manufacturing activity hit a three-year low in November, while the euro hovered near a six-week high on optimism over a planned debt buy back by Greece.
MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.2 percent to 451.27, backing away from a nine-month high struck on Monday.
STOCKS TO WATCH
CIL will soon sign a MoU with the South African government for exploration of coal blocks and for setting up a separate subsidiary in that country.
CESC Limited and Tata Power will sign separate agreements with Jharkhand State Electricity Board (JSEB) on December 5 for taking over power supply to the state capital – Ranchi and the steel city – Jamshedpur.
MphasiS had signed a definitive agreement to acquire US-based Digital Risk, for $175 million (Rs 958 cr).
Jet Airways might raise Rs 1,600 cr from the sale of its 24 per cent stake to Etihad Airways.
Ramco Systems has bagged a deal from Dubai-based engineering and construction solutions company, ADC Energy Systems, to provide enterprise resource planning on Cloud.
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