Indian shares are set for a cautious start on Wednesday after three straight days of losses, with gains elsewhere in Asia and a late rally in U.S. stocks expected to provide some comfort to jittery investors.
Lenders such as State Bank of India will be watched, a day after ratings agency Moody's Investors Service downgraded the standalone rating for SBI, citing its "modest" capital and deteriorating asset quality, sending its shares to a two-year low.
"The opening should be more or less flat," said Ambareesh Baliga, chief operating officer at brokerage Way2Wealth.
European finance ministers agreed on Tuesday to safeguard their banks as doubts grew about whether a planned second bailout package for debt-laden Greece would go ahead, helping Asian shares rebound on Wednesday.
At 8:17 a.m. (0247 GMT), MSCI's broadest index of Asia Pacific shares outside Japan was up 0.4 percent, after hitting a two-year low the day before. Japan's Nikkei however erased early gains to be down 0.83 percent.
The Nifty India stock futures in Singapore was flat.
The main 30-share BSE index dropped 1.77 percent on Tuesday to its lowest close in more than five weeks, as SBI's rating downgrade sent bank stocks tumbling.