Indian shares set for muted opening, tracking Asian Markets

Indian shares to open flat: Indian stock markets are set to open with minimal changes on Friday, in line with trends across Asian markets. 

The performance comes after US economic indicators heightened concerns about potential delays in Federal Reserve rate adjustments.

As of 8:06 am, GIFT Nifty was trading at 21,776, indicating a marginal opening near Thursday's closing figure of 21,717.95 for the Nifty 50 index.

On Wall Street, equities closed higher following weekly data showing a decline in the number of Americans filing for unemployment benefits, dropping to 218,000, which was below expectations.

Although the data showcased resilience in the US labour market, it tempered hopes for immediate rate cuts by the Federal Reserve, affecting sentiment across Asian markets, which opened lower on Friday.0

The markets had experienced a 1 per cent decline in both the Nifty 50 and Sensex indexes on Thursday after the Reserve Bank of India (RBI) maintained its inflation forecast for fiscal 2025 above the 4 per cent target. 

The RBI, as anticipated, kept rates unchanged for the sixth consecutive meeting, stressing that rate reductions may not be imminent until consumer price inflation aligns with its targets.

Foreign institutional investors (FIIs) sold shares worth Rs 4,934 crore on a net basis on Thursday, while domestic institutional investors (DIIs) bought shares worth Rs 5,512 crore.

Despite foreign outflows from domestic equities in January, equity mutual funds saw a surge in inflows to nearly a two-year high, driven by sustained interest in small-cap stocks. This marks the 35th consecutive month of equity inflows, reflecting enduring retail participation and a rise in Systematic Investment Plan (SIP) accounts.

Venkat Chalasani, CEO of the Association for Mutual Funds in India, highlighted the consistent commitment of domestic investors to disciplined wealth creation through mutual funds.

Key earnings announcements for Friday include Hero MotoCorp, Tata Power Company, Zydus Lifesciences, and MRF.

Stocks to watch 

Life Insurance Corporation of India: India's largest insurer reported a nearly 50% rise in third-quarter profit, on higher shareholders' fund transfer.

Biocon: Drugmaker posted profit in December quarter, helped by biosimilar boost, divestment gains.

Bharat Heavy Electricals: Company secured an order worth Rs 5,500 crore from Haryana Power Generation Corporation.

(With Reuters Inputs)