Share market set for muted open, GIFT Nifty indicates positive start

Share market today: The share market is expected to open with marginal gains on Friday, following a week of over 2 per cent decline, primarily driven by heightened volatility and sustained selling by foreign investors amid the speculations on national elections.

As of 8:10 am IST, the Gift Nifty was trading at 22,128.50, indicating a near-flat opening for the Nifty 50 index, close to Thursday's closing figure of 21,957.50.

While global markets have seen a positive trend this week, with MSCI's global stocks index rising by 1.4 per cent, the Indian equities have moved inversely, witnessing a decline of 2.3 per cent. Foreign institutional investors (FIIs) have withdrawn approximately $2 billion in May, with over $800 million pulled out on Thursday alone, based on provisional data from exchanges. 

Market expert Deepak Jasani, Head of Retail Research at HDFC Securities, noted, "FIIs are playing safe and lightening their positions ahead of the subsequent phases of elections and vote count."

The cautious sentiment pushed the Nifty 50 to a three-week low on Thursday, while volatility scaled to a 19-month high.

Elsewhere, Asian stocks, excluding Japan, experienced a 0.4 per cent increase, buoyed by robust China trade data and gains on Wall Street, driven by hopes of interest rate cuts following a higher-than-expected rise in U.S. weekly jobless claims.

Key stocks to watch include Bharat Petroleum Corp Ltd (BPCL), which missed profit estimates for the March quarter due to lower margins and increased costs; Brigade Enterprises, which announced the development of a residential project in Bengaluru valued at Rs 660 crore; and Tata Steel, where 85 per cent of union members voted in favour of a strike against the company's job-cut plans at Port Talbot in Wales.

(With Reuters inputs)