Indian shares are set for a muted start on Tuesday, tracking their Asian peers after China's efforts to support its property markets failed to excite investors, while fading hopes of an early US rate cut also weighed on sentiment.

India's GIFT Nifty was trading at 22,139 as of 7:48 a.m., indicating that the NSE Nifty 50 will open near its Monday's close of 22,122.25.

India's blue-chip index Nifty 50 has gained in each of the last five sessions, adding 2.34 per cent over that period and hitting a new all-time high of 22,186.65 on Monday.

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Asian markets fell 0.16 per cent. China's decision to cut its benchmark reference rate for mortgages to revive its ailing property market failed to support sentiment as investors awaited bigger stimulus measures.

Last week's hot US inflation prints have also led markets to scale back expectations of early rate cuts. Wall Street equities were closed overnight for a holiday.

Domestic institutional investors were net buyers for the sixth session in a row on Monday, adding shares worth ₹453 crore, on a net basis. Foreign institutional investors sold a net ₹755 crore of shares.