Indian shares may open lower on oil, inflation

MUMBAI, June 17 (Reuters) - Indian shares are expected to
start lower on Tuesday, after oil prices jumped to a record
high overnight, but reports of healthy advance tax paid by
banks could provide comfort.

Crude surged to just shy of $140 a barrel on Monday before
reversing to trade below $135 CLc1 on Tuesday, easing some of
the sudden shock of the rise. See: [ID:nSIN101381]

"There is an underlying fear inflation has overtaken growth
and crude is adding fuel to the fear," Arun Kejriwal,
strategist at research firm KRIS, said.

Media reports said advance tax paid by top banks such as
State Bank of India (SBI.BO: Quote, Profile, Research) and ICICI Bank (ICBK.BO: Quote, Profile, Research) were
"significantly higher" than the year-ago, indicating strong
earnings.

Inflation raced to its highest in seven years at the end of
May at 8.75 percent, and is expected to top 10 percent this
month as higher fuel prices feed in. [ID:nDEL47629]

By 0320 GMT, Tokyo .N225 rose 0.13 percent and Hong Kong
.HSI fell 0.4 percent.

The Nifty futures SINc1 traded in Singapore was down 0.5
percent.

The 30-share BSE index .BSESN closed 1.4 percent higher
on Monday at 15,395.82, its highest close in more than a week
but is down nearly a quarter so far in 2008.
-----------------MARKET SNAPSHOT@0331
GMT----------------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 1360.14 0.01% 0.110
USD/JPY JPY= 107.85 -0.32% -0.350
10-YR US TSY YLD US10YT=RR 4.2328 -- -0.046
SPOT GOLD XAU= $884 0.31% 2.700
US CRUDE CLc1 $134.5 -0.08% -0.110
DOW JONES .DJI 12269.08 -0.31% -38.27
ASIA ADRS 158.84 0.89% 1.40
---------------------------------------------------------------

FACTORS TO WATCH
* Indian rupee may tread water, stocks watched
[INR/]
* Indian bond yields may rise on cash worries
[IN/]
* FOREX-Euro hits 11-mth high vs yen on ECB rate view
[FRX/]
* Oil flat, weighs Saudi output after fall from high
[O/R]
* GLOBAL MARKETS-Asia stocks edge down on high oil; euro rises
[MKTS/GLOB]
* US STOCKS-Optimism about tech spending lifts Nasdaq, Dow
dips
[.N]
* For closing rates of Indian ADRs
INADR

STOCKS TO WATCH

* Jet Airways Ltd (JET.BO: Quote, Profile, Research), after the Mint daily reported
energy group Reliance Industries Ltd (RELI.BO: Quote, Profile, Research) was in talks to
acquire a 6-7 percent stake in the airline. [ID:nBOM265484].

* Ipca Laboratories Ltd (IPCA.BO: Quote, Profile, Research) after it secured the U.S.
Food and Drug Administration approval for sale of its
metoclopramide hydrochloride tablets in multiple strengths in
that country. The drug is used to treat nausea and vomiting.
(Reporting by Narayanan Somasundaram and Bharghavi Nagaraju)