Sensex seen up on Asian, U.S. gains
NEW DELHI (Reuters) - Indian shares are seen opening higher on Monday after a holiday weekend, following other Asian markets on hopes that a credit crunch in the United States would ease, but rising inflation should keep optimism in check.
Annual inflation accelerated to close to 6 percent in early March, a 10-month high far above where the central bank wants it, and analysts said the unexpected spurt meant monetary policy was unlikely to be eased despite signs of slowing growth.
"Our markets will open slightly higher after the rebound in the U.S., but could soon neutralise on inflation concerns," said V.K. Sharma, head of research at Anagram Stock Broking.
The 30-share BSE index rose 1.09 percent on Wednesday to 14,994.83. Indian markets were shut on Thursday and Friday for holidays.
"The market is opening after four days. So one has to allow some volatility. But I don't see the markets going too much into red," Sharma said.
Stock markets in Japan and Seoul had each gained 0.4 percent by 0318 GMT, while Australia and Hong Kong remained closed for a public holiday.
Foreign funds have sold a net $3.8 billion of Indian shares this year, after investing a record $17.4 billion in 2007.
On Thursday, U.S. stocks closed their best week in nearly two months and are seen extending the solid rally this week, bolstered by the Federal Reserve's aggressive liquidity action.
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