Indian shares seen choppy on politics, inflation

MUMBAI, July 4 (Reuters) - Indian shares are seen choppy
with a negative bias on Friday, as high oil prices, political
stability concerns and inflation keep investors edgy.

Oil CLc1, India's biggest import, was trading above $145
a barrel after smashing records five times in the past seven
sessions on tensions between Israel and Iran. See [ID:nSIN6275]

Annual inflation is expected at 11.63 percent in the week
ended June 21, the Financial Chronicle newspaper reported on
Friday, quoting finance ministry estimates.

The data, which is due for release at noon (0630 GMT), was
forecast at 11.44 percent, the highest in more than 13 years,
in a Reuters poll on Thursday. [ID:nBOM265600]

Sandeep Shenoy, strategist at PINC Research, said political
uncertainties would also weigh on sentiment.

"We could open subdued and see a pick up later. But the day
will be volatile," he said. "Till we have political clarity,
the market is not going to be gung ho."

A regional party that holds the balance of power said on
Thursday it had to clear doubts before supporting a nuclear
deal with the United States, but hinted it may give crucial
backing to the embattled government. See [ID:nSP208207]

The main 30-share index fell 4.2 percent to
13,094.11 on Thursday. The benchmark, which fell 18 percent in
June, is down 35.5 percent this year..

At 0316 GMT, Tokyo .N225 was down 0.31 percent, Hong Kong
.HSI firmed 0.6 and the MSCI index for Asian stocks outside
Japan .MIAPJ0000PUS was up 0.06 percent.

The Nifty futures SINc1 traded in Singapore rose 0.13
percent.
--------------------MARKET SNAPSHOT AT 0319
GMT-----------------

INSTRUMENT LAST PCT CHG NET
CHG
S&P 500 .SPX 1262.9 0.11% 1.380
USD/JPY <JPY=> 106.72 -0.05% -0.050
10-YR US TSY YLD <US10YT=RR> 3.9905 -- 0.000
SPOT GOLD <XAU=> $935 0.23% 2.150
US CRUDE CLc1 $145.44 0.10% 0.150
DOW JONES .DJI 11288.54 0.65% 73.03
ASIA ADRS .BKAS 145.47 0.57% 0.82
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