Indian shares seen up before cbank policy decision

MUMBAI, Jan 29 (Reuters) - Indian shares are seen opening
higher on Tuesday on expectations the central bank will cut
interest rates at a policy review, with sentiment underpinned
by gains in some Asian markets.

India's central bank reviews monetary policy on Tuesday,
with analysts slightly favouring a cut in the key lending rate
following hefty U.S. rate cuts last week. See: [RBI/INT].

Seven of 13 analysts polled by Reuters expect a 0.25
percent cut in the repo rate to 7.50 percent. The announcement
is due at noon (0630 GMT).

Top car maker Maruti Suzuki (MRTI.BO: Quote, Profile, Research), power producers
Suzlon Energy (SUZL.BO: Quote, Profile, Research) and Tata Power (TTPW.BO: Quote, Profile, Research) and steel
maker Steel Authority (SAIL.BO: Quote, Profile, Research) report December quarter results
on Tuesday.

"Markets seen getting better today," said Ambareesh Baliga,
vice president at Karvy Stock Broking.

"If a rate cut happens, the recovery we saw yesterday will
continue. If it doesn't happen, it will be negative for banks,
auto and real estate stocks."

The 30-share BSE index .BSESN ended down 1.14 percent
down at 18,152.78 on Monday, recovering from being 5 percent
down during trade as banks and auto stocks rose on rate cut
hopes.

Data showed foreign funds bought $166 million worth shares
on Friday, their first net purchase since Jan. 14. The funds
had unloaded $3.6 billion of stocks in the seven sessions to
Thursday.

Most major Asian stock markets were trading higher on
Tuesday with investors betting on another deep U.S. rate cut
this week.

At 0317 GMT, Japan's Nikkei .N225 was up 1.8 percent, but
MSCI's measure of other Asia Pacific markets .MIAPJ0000PUS
was trading just 0.1 percent higher.

STOCKS TO WATCH

* Jet Airways Ltd (JET.BO: Quote, Profile, Research), after it reported net loss for
December quarter. See [ID:nBOM125059].

* Mahindra & Mahindra Financial Services Ltd (MMFS.BO: Quote, Profile, Research),
after its December quarter net profit rose 66 percent.
[ID:nBOM260890].

* India Hotels Co Ltd (IHTL.BO: Quote, Profile, Research), after its December quarter
net profit rose 31 percent. [ID:nBOM7559].

* Biscuits and dairy products maker Britannia Industries
Ltd (BRIT.BO: Quote, Profile, Research), after quarterly net profit surged.
[ID:nBOM106369].

FACTORS TO WATCH
* For technical analysis click on www.reutersindia.net.
* Indian rupee seen up on inflow hopes, waiting on cbank
[INR/]
* Indian bond to tread water ahead of cbank review
[IN/]
* FOREX-Yen climbs on recession fears, stocks ignored
[FRX/]
* Oil at over $91 on hopes for Fed cut, lower stocks
[O/R]
* GLOBAL MARKETS-Fed cut hopes perk up stocks; gold at record
[MARKETS/AS]
* US STOCKS- Rate cut hopes lift Wall St; AmEx off late
[.N]
* For closing rates of Indian ADRs
INADR
(Reporting by Devidutta Tripathy & Virendra Verma; Editing by
John Mair)