Indian shares to start higher, Wipro watched

NEW DELHI, July 18 (Reuters) - Indian shares should start
higher on Friday after a lower-than-expected inflation, a
further drop in oil prices and firmer Asian stock markets.

But investors will be wary ahead of the weekend and a trust
vote in parliament early next that will decide whether the
government will stay in office.

No. 3 software services exporter Wipro (WIPR.BO: Quote, Profile, Research) will be
watched after it posted a 15 percent rise in quarterly profit,
missing market forecasts. [ID:nBMA001096]

"Market should open positive as inflation figures would add
to sentiment, but next week's trust vote would keep things
under check," said Neeraj Dewan, director at Quantum
Securities.

Top private sector firm Reliance Industries (RELI.BO: Quote, Profile, Research) and
No. 2 mobile operator Reliance Communications (RLCM.BO: Quote, Profile, Research),
controlled by India's feuding billionaire Ambani brothers,
would be in focus after the older sibling started an
arbitration proceeding against the mobile firm over a claim of
share rights. See: [ID:nBOM22989]

The move could complicate Anil Ambani-controlled Reliance
Communications' talks with South Africa's MTN (MTNJ.J: Quote, Profile, Research) for a
possible combination as the deadline for exclusive talks ends
on Monday.

"I don't see any major reaction in the markets as these
things were kind of expected. But Reliance Communications seems
to be better placed because of recent developments," Dewan
said, referring to the close links between Anil Ambani and the
government's new ally Samajwadi Party.

The main 30-share BSE index closed up 4.26 percent
at 13,111.85 on Thursday, posting its biggest gain in a week, a
day after falling to its lowest close in 15 months.

Data released after market closed on Thursday showed annual
inflation at 11.91 percent in early July, slightly higher than
the previous week's 11.89 percent, but below market
expectations for more than 12 percent.

Asian stocks rose on Friday, helped by a 10 percent decline
in oil prices this week and also results from investment bank
JPMorgan (JPM.N: Quote, Profile, Research) that were not as bad as expected improved
sentiment.

By 0303 GMT, Tokyo's Nikkei .N225 was up 0.4 percent, but
MSCI's measure of other Asia Pacific markets .MSCIAPJ was
down 0.4 percent.
-------------------MARKET SNAPSHOT AT 0303 GMT----------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 1260.32 1.2% 14.960
USD/JPY <JPY=> 106.32 0.08% 0.090
10-YR US TSY YLD <US10YT=RR> 3.9868 -- -0.006
SPOT GOLD <XAU=> 956.4 -0.02% -0.200
US CRUDE CLc1 129.75 0.36% 0.460
DOW JONES .DJI 11446.66 1.85% 207.38
ASIA ADRS .BKAS 145.91 0.14% 0.20
-------------------------------------------------------------

FACTORS TO WATCH
* For technical analysis double click on www.reutersindia.net
* Indian rupee to rise as oil slips, Asian shares up
[INR/]
* Indian bond yields seen easing as oil drops
[IN/]
* FOREX-Dollar edges up; oil down but financial concerns weigh
[FRX/]
* Oil edges up, tentative after steep 3-day slump
[O/R]
* GLOBAL MARKETS-Asia stocks inch up as oil slides
[MKTS/GLOB]
* US STOCKS-Market up on oil; earnings optimism fizzles late

[.N]
* For closing rates of Indian ADRs INADR

STOCKS TO WATCH

* Tata Steel Ltd (TISC.BO: Quote, Profile, Research), after the world's sixth-largest
steel maker said sales from Indian operations in the June
quarter rose 11 percent from a year earlier to 1.08 million
tonnes. [ID:nBOM121726].

* Satyam Computer Services Ltd (SATY.BO: Quote, Profile, Research), ahead of its
quarterly results on Friday. The No. 4 software services firm
is expected to post a net profit of 5.08 billion rupees, on
revenue of 26.47 billion rupees.

* West Coast Paper Mills (WSTC.BO: Quote, Profile, Research), after it said it would
raise 650 million rupees through a preference share issue.

* Unichem Laboratories Ltd (UNLB.BO: Quote, Profile, Research), after a senior
official forecast a 60 percent jump in consolidated net profit
for 2008/09 helped by growth in its international operations
and bulk drug business.

* Companies reporting results on Friday include -- Cipla
(CIPL.BO: Quote, Profile, Research), UltraTech Cement (ULTC.BO: Quote, Profile, Research), Allahabad Bank
(ALBK.BO: Quote, Profile, Research), Apollo Tyres (APLO.BO: Quote, Profile, Research), Bharat Earth Movers
(BEML.BO: Quote, Profile, Research), Chennai Petroleum Corp (CHPC.BO: Quote, Profile, Research), Great Eastern
Shipping (GESC.BO: Quote, Profile, Research), Gujarat NRE (GJNC.BO: Quote, Profile, Research), Infra Development
Finance (IDFC.BO: Quote, Profile, Research), Jaiprakash Associates (JAIA.BO: Quote, Profile, Research), Kirloskar
Brothers (KRBR.BO: Quote, Profile, Research), Max India (MAXI.BO: Quote, Profile, Research) and Shree Cement
(SHCM.BO: Quote, Profile, Research).
(Reporting by Devidutta Tripathy and Bharghavi Nagaraju;
Editing by Ranjit Gangadharan)