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 Indian shares are likely to open little changed on the final trading day of the financial year 2024, tracking Asian peers, while high volatility is expected ahead of monthly derivatives expiry.

The Gift Nifty was trading at 22,176 as of 8:04 a.m. IST on Thursday, indicating that the blue-chip NSE Nifty 50 will open near Wednesday's close of 22,123.65.

India's benchmark indexes Nifty and BSE Sensex advanced in the previous session, led by heavyweight Reliance Industries.

The Nifty 50 has gained 27.44% in fiscal 2024 so far, on course for the best fiscal year performance since FY2021 and second best in 14 years.

The rise has been aided by strong macroeconomic fundamentals, sustained inflows from domestic mutual fund investors and the return of foreign portfolio investors after a two-year lull.

"With monthly derivatives expiry and financial year-end, volatility will likely be elevated," said Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services.

Since jumping to a 10-month high of 16.58 ahead of the interim budget on Feb. 1, the volatility index has eased to 12.70.

Asian markets were little changed, with the MSCI ex-Japan shedding 0.02%.

Wall Street equities closed higher overnight, ahead of a key inflation reading later this week.

Recent hotter-than-expected U.S. inflation data triggered worries over a delay in interest rate cuts but the Fed's commentary at the policy meeting earlier this month eased concerns, as the central bank stuck to projections of three rate cuts this year. [MKTS/GLOB]

Markets now expect a U.S. rate cut in June, but the inflation data on Friday could influence the timing.

Foreign portfolio investors bought Indian shares worth 21.70 billion rupees (~$260 million) on a net basis on Wednesday, while domestic institutional investors purchased a net 11.98 billion rupees worth of stocks.

STOCKS TO WATCH:

** BHEL: Company received order worth 40 billion rupees from Adani Power for setting up a thermal power plant in Chhattisgarh.

** Ultratech Cement: Company commissioned additional production capacity of 2.4 Mtpa across four units.

** Zydus Lifesciences: U.S. drug regulator conducted an inspection at a unit's manufacturing plant in Ahmedabad, which closed with four observations.

** Cyient: Company announced strategic partnership with German original equipment maker Deutsche Aircraft for design of rear fuselage section of one of its aircraft.

($1 = 83.3540 Indian rupees)