Indian shares seen higher on Asia, inflation eyed

MUMBAI, May 16 (Reuters) - Indian shares are seen rising on Friday morning, with sentiment helped by gains in overseas markets, but the rise may be limited ahead of inflation data and given worries about slowing growth and record oil prices.

Data at noon (0630 GMT) is expected to show annual inflation at 7.5 percent on May 3, according to a Reuters poll. This is below 7.61 percent a week earlier, which was its highest since Nov. 13, 2004. Please see: [ID:nBOM78761].

"We will have a strong opening on the back of international cues," said Arun Kejriwal, strategist at research firm KRIS.

The 30-share BSE index closed up 2.21 percent on Thursday at 17,353.54, its highest close in a week. It is down more than 14 percent in 2008.

U.S. stocks .DJI rose 0.7 percent on Thursday as a pullback in oil prices eased some concerns about inflation, with technology stocks buoyed by a battle to control Yahoo Inc YHAOO.O.

At 0322 GMT, Tokyo .N225 and Seoul were each up 0.2 percent while Sydney had gained 1.3 percent. ------------------MARKET SNAPSHOT@-0326-----------------------

INSTRUMENT LAST PCT CHG NET CHG S&P 500 .SPX 1,423.57 1.06% 14.91 USD/JPY <JPY=> 104.67 -0.02% -0.020 10-YR US TSY YLD <US10YT=RR> 3.8352 -- 0.015 SPOT GOLD <XAU=> $881.05 0.07% 0.600 US CRUDE CLc1 $124.83 0.57% 0.710 DOW JONES .DJI 12992.66 0.73% 94.28 ASIA ADRS .BKAS 168.61 2.31% 3.80 -------------------------------------------------------------

FACTORS TO WATCH * For technical analysis double-click on www.reutersindia.net * Indian rupee market report [INR/] * Indian bond market report [IN/] * FOREX-Dollar steadies vs yen, off two-month high [FRX/] * Oil near $125 on heating oil supply strain [O/R] * GLOBAL MARKETS-Asian stocks rise as dollar holds its ground [MARKETS/AS] * US STOCKS- Oil's fall, tech's gain drive stocks higher [.N] * For closing rates of Indian ADRs INADR

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