Indian shares seen subdued ahead of inflation data

MUMBAI, June 13 (Reuters) - Indian shares are expected to
ease early on Friday, ahead of weekly inflation data and
tracking weak Asian cues.

State Bank of India (SBI.BO: Quote, Profile, Research) could be in focus after its
chairman said it would review its interest rates on Friday,
after the central bank increased a key lending rate on
Wednesday to contain inflation expectations.

"We may open flat and may trade slightly lower ahead of the
inflation data," said Arun Kejriwal, strategist at KRIS, an
investment advisory firm.

India's annual inflation rate is expected to have held at
3-3/4-year highs above 8 percent at the end of May. The data is
due by noon (0630 GMT). Traders expect inflation to hit 13-year
highs in early June, above 9 percent after the government
raised state-set fuel prices. See: [ID:nBOM94504].

A Reuters poll of economists on Thursday forecast the
central bank may again raise rates in 2008. [ID:nBOM94299]

By 0320 GMT, Tokyo .N225 dropped 0.16 percent, Seoul
.KS11 fell 0.4 percent and Sydney was down 0.24
percent.

Nifty futures SINc1 traded in Singapore was litte
changed.

The 30-share BSE index .BSESN closed 0.43 percent up on
Thursday at 15,250.20. It is down about a quarter in 2008, with
foreign funds pulling out nearly $5.3 billion.
-----------------MARKET SNAPSHOT@0325
GMT----------------------

INSTRUMENT LAST PCT CHG NET
CHG
S&P 500 .SPX 1339.87 0.33% 4.380
USD/JPY JPY= 107.71 -0.16% -0.170
10-YR US TSY YLD US10YT=RR 4.2325 -- 0.018
SPOT GOLD XAU= $872.35 0.51% 4.450
US CRUDE CLc1 $136.79 0.04% 0.050
DOW JONES .DJI 12141.58 0.48% 57.81
ASIA ADRS 154.76 0.28% 0.43
-------------------------------------------------------------

FACTORS TO WATCH
* Indian rupee eases, oil prices weigh
[INR/]
* Indian bond yields up before inflation data
[IN/]
* FOREX-Dollar holds firm, G8 and inflation data eyed
[FRX/]
* Oil dips as dollar gains counter Nigeria supply fears
[O/R]
* GLOBAL MARKETS-Asia stocks, bonds hurt as inflation haunts
[MKTS/GLOB]
* US STOCKS-Market rises on retail sales, BUD deal [.N]
* For closing rates of Indian ADRs
INADR

STOCKS TO WATCH

* Ranbaxy Laboratories Ltd (RANB.BO: Quote, Profile, Research) after the Business
Standard newspaper, citing unnamed sources, said Pfizer Inc
(PFE.N: Quote, Profile, Research) may make a counter bid for the Indian drug maker, in
which Japan's Daiichi Sankyo Co Ltd (4568.T: Quote, Profile, Research) aims to buy a
controlling stake.

A Ranbaxy spokesman said: "That is speculation. We have a
binding contract with Daiichi. It is a final contract."

* Larsen & Toubro (LART.BO: Quote, Profile, Research), after India's top engineering
firm said it would defer listing its software unit to 2009/10,
as the division had not reached a revenue target and market
conditions were unfavourable. [ID:nBOM91054].

* Karnataka Bank (KBNK.BO: Quote, Profile, Research), after its board approved a
rights issue of one share for every five held at 100 rupees
each and raising up to 5 billion rupees through qualified
institutional placement.

* State-run lender IFCI Ltd (IFCI.BO: Quote, Profile, Research), after it said it
would initiate legal process to pare Life Insurance Corp's
stake to 8.39 percent from 11.35 percent now, but did not make
any announcement relating to induction of a strategic
investor.
(Reporting by Hiral Vora and Bharghavi Nagaraju; Editing by
Ranjit Gangadharan)