US markets ended with losses overnight. Dow Jones was down 336 points overnight. US investors are focused on debt ceiling negotiations. US Treasury Secretary Janet Yellen reiterated her warning that the government needs to raise the limit immediately as the country faces the possibility of defaulting as early as June 1.

On the economic front, US April retail sales were weaker than anticipated by economists polled by Dow Jones. investors will watch for data on housing starts and building permits on Wednesday. Retail companies Target and TJX are both slated to report quarterly earnings on Wednesday morning.

Nifty is facing resistance at 18300. It closed with 112 point loss on Tuesday.

Domestic investors sold in cash overnight. Domestic institutional investors net sold Rs 886.17 crore in cash, while foreign institutional investors net bought Rs 1,406.86 crore in cash.

Bharti Airtel reported earnings post market hours on Tuesday. While its revenues missed estimates, margin were a beat. Its consolidated revenue was up 0.5 percent quarter-on-quarter compared to the estimate of 2 percent. Its revenue missed estimates due to lower India mobile revenue. The telco's India mobile revenue growth was at 1 percent compared to the estimated 2.8 percent.