The market may edge higher in early trade tracking mostly higher Asian stocks.

Key benchmark indices slumped on Wednesday, 16 May 2012 after Greece failed to form a government, setting the stage for a June election that could raise the risk of Athens abandoning the euro and deepening the euro zone's debt crisis. The BSE Sensex tumbled 298.16 points or 1.83% to settle 16,030.09, its lowest closing level since 9 January 2012.

Foreign institutional investors (FIIs) sold shares worth a net Rs 546.85 crore on Wednesday, 16 May 2012 as per provisional figures. FIIs sold shares worth Rs 184.28 crore on Tuesday, 15 May 2012.

Asian stocks were mostly higher on Thursday, one day after selloff on Wednesday. Key benchmark indices in China, Hong Kong, Singapore, Taiwan and South Korea were up by 0.12% to 0.77%. Key benchmark indices in Japan and Indonesia fell by between 0.17% to 1.61%.

Greece on Wednesday put a senior judge in charge of an emergency government to lead the nation to its second election in just over a month on June 17, which will likely determine whether it remains in the common currency area. out of banks, weakening the country's strained financial system.

Political developments in Europe have kept global equity investors sidelined this week, with Greece now headed back to the polls in June for an election which may eventually lead to its exit from the euro zone.

U.S. shares ended lower Wednesday, with the Dow Jones Industrial Average languishing near a four-month low, as investors contrasted improved domestic data with heightened concerns about Greece's future membership in the euro zone.