Indian shares to get lift from Asia, upside limited

MUMBAI (Reuters) - Indian shares may open higher on Thursday, lifted by gains in Asian markets as some worries about U.S. inflation eased, but concerns over signs of a local slowdown may limit the upside.

A smaller-than-expected rise in U.S. consumer prices in April helped stocks on Wall Street rise 0.5 percent on a view that Federal Reserve would be able to keep interest rates low.

At 0319 GMT, Tokyo was up 1 percent, Seoul had gained 1.63 percent and Sydney was up 0.5 percent.

The 30-share BSE index rose 1.35 percent to 16,978.35 on Wednesday, its highest close since May 8. It is about 16 percent down in 2008.

"The market may go up tracking global cues, but we do not see it sustaining gains in later trade," said V.K. Sharma, head of research at Anagram Stock Broking Ltd.

"Technology stocks are back in favour for the time being," he said.

Shares in software-services providers, which get more than half their revenue from the United States, have rallied as the rupee has fallen sharply this month. The rupee hit a 13-month low of 42.67 per dollar on Wednesday.