India's GIFT Nifty was trading at 22,131.50 as of 7:44 a.m. IST, indicating that the NSE Nifty 50 will open near Monday's close of 22,122.05.

Both the blue-chips Nifty 50 and BSE Sensex dropped about 0.4% each in the previous session, dragged by information technology stocks and profit booking near record-high levels.

The Nifty hit record highs in each of the five sessions last week.

"Nifty 50 has slipped below the crucial support of 22,200," said Rupak De, senior analyst at LKP Securities.

"The index is likely to remain sideways during the next few days," De added.

Asian markets were flat at the open. Wall Street equities logged losses overnight, ahead of U.S. durable goods order data on Tuesday.

The U.S. Federal Reserve's preferred measure of inflation - the core personal consumption expenditures (PCE) price index - is due on Thursday and could influence the timing of the first rate cut. [MKTS/GLOB]

Hopes of an early U.S. rate cut have faded, with markets pricing in a likely cut in June, from earlier expectations of March, on the back of the recent hotter-than-expected inflation and robust labour market data.

Foreign investors net sold shares worth 2.85 billion rupees ($34 million) on Monday. Domestic institutional investors offloaded shares worth a net 53.3 million rupees.

STOCKS TO WATCH:

** Paytm: Company's founder and chief executive officer Vijay Shekhar Sharma quit payments bank board in major shakeup.

** Union Bank of India: Lender raised 30 billion rupees, under QIP, at an issue price of 135.65 rupees. Morgan Stanley, BNP Paribas, Societe Generale, HDFC Life, SBI Life were among the investors.

** Wipro: Company announced a joint 5G private wireless solution with Nokia to help enterprises scale their digital transformation.

($1 = 82.8710 Indian rupees)

(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Eileen Soreng)