The Sensex and Nifty are likely to open on a weak note tracking weakness in other Asian markets.
Meanwhile, the Nifty futures traded on the Singapore Stock Exchange also indicated a weak start for the Indian markets. The SGX Nifty was down 0.26 per cent or 20 points at 7,565.
Asian shares hovered near four-year lows and oil prices languished at near 12-year lows on Tuesday as investors fretted over whether Beijing may be losing control of the economy.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.3 per cent in early trade but still stood near a four-year low touched on Monday, and was still down more than 8 per cent since the start of 2016.
Japan's Nikkei fell 1.3 per cent after a market holiday on Monday, hitting a three-month low and down over 8 per cent so far this year.
From the beginning of year, markets have been rocked by plunges in Chinese stock markets, the yuan's fall and subsequent heavy intervention by the Chinese authorities to push it back up.
Overnight, Wall Street rallied to finish slightly higher on Monday, steadying after a brutal start to 2016, while beaten-down oil prices plunged further after a fresh tumble for Chinese stocks.
In a volatile session in which US stocks were lower much of the day, the S&P 500 and the Dow rallied to close higher after last week posting their worst-ever five-day starts to the year.
The Dow Jones industrial average gained 52.12 points, or 0.32 per cent, to 16,398.57, the S&P 500 was up 1.64 points, or 0.09 per cent, to 1,923.67 and the Nasdaq Composite lost 5.64 points, or 0.12 per cent, to 4,637.99.
Back home, the foreign institutional investors sold shares worth Rs 1,319.24 crore while the domestic institutional investors bought shares worth Rs 900.99 crore on Monday.
TCS will be in focus today as it will come out with its third quarter earnings. Analysts expect the IT bellwether to report sales at Rs 27,647 crore compared to Rs 27,165 crore during the previous quarter. Net profit is expected at Rs 5,987 crore as against Rs 6,084 crore in the September quarter.
Analysts expect dollar revenue growth at 0.5 per cent at $4,176 million and say that there would be 1% growth in constant currency terms. Street expects a 60 basis points impact of Chennai floods.
Operating margins are likely to see a 75 basis points decline at 26.3 per cent owing to fall due to drop in utilization in Chennai.
(With inputs from Reuters)