Stock market to open flat as volatility in shares persists

Stock market today: The share market is set for a subdued opening today, as uncertainties surrounding national elections weigh on market sentiment. The Gift Nifty GIFc1 was trading at 22,395 as of 8:15 am, indicating a potential opening near Tuesday's close of 22,302.50 for the Nifty 50.

Over the past two days, benchmarks have relinquished early gains to end lower amidst election uncertainty and sustained foreign investor selling. Additionally, the ongoing earnings season has contributed to heightened volatility, reaching a 15-month high.

Analysts note that lower voter turnout has heightened investor concerns regarding the potential majority for the ruling party in the elections. Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services, observes resistance at higher levels in the Nifty, reflecting cautious investor sentiment amidst the earnings season and elections progress.

Foreign portfolio investors (FPIs) continued their selling spree, offloading Indian shares worth Rs 3,669 crore ($439 million) on a net basis on Tuesday. Conversely, domestic institutional investors bought stocks worth a net Rs  2,305 crore. FPIs have been net sellers in 20 out of the last 25 sessions.

In the broader Asian context, shares edged lower following a loss of momentum in Wall Street's rally amid mixed signals from US policymakers and economic data pertaining to the interest rate trajectory.

In terms of domestic earnings, Hero MotoCorp and Larsen and Toubro are anticipated to report results after market close.

Stocks to watch out for

1. Dr Reddy's Laboratories expects a robust product pipeline in the key North American market for FY25 after surpassing fourth-quarter profit expectations.
2. United Breweries, where fourth-quarter profit surged significantly driven by price hikes and increased sales of premium beer.
3. Pidilite Industries, which saw fourth-quarter profit growth aided by lower input costs.