Indian shares seen wary; inflation, DLF eyed

MUMBAI, Oct 14 (Reuters) - Indian shares are expected to be
subdued ahead of monthly inflation due around noon (0630 GMT) on
Friday, with the data set to provide cues on the central bank's
monetary policy stance.
The wholesale price index probably rose 9.70
percent in September from a year earlier, easing slightly from
9.78 percent in August, a Reuters poll showed.
The Reserve Bank of India, which has raised rates a dozen
times since mid-March 2010 to rein in high inflation, is set to
review policy on Oct. 25. Many analysts expect another 25 basis
point increase in rates despite slowing economic growth.
Shares in DLF will be watched after sources told
Reuters LVMH , China's HNA Group and a Middle Eastern
fund are expected to submit binding bids for the Indian
developer's luxury hotel chain.
Market sentiment is likely to be dented by continued
uncertainty about the health of the global economy and European
debt crisis with ratings agency Standard and Poor's cutting the
long-term credit rating of Spain by one notch.
The MSCI's broadest index of Asia Pacific shares outside
Japan was down 0.8 percent by 0247 GMT, while
Japan's Nikkei fell 0.7 percent and South Korea's Kospi
was trading 0.4 percent lower.
The Nifty India stock futures traded in Singapore SINc1
were down 0.04 percent, pointing to a subdued opening for the
Indian market.
On Thursday, the main 30-share BSE index ended down
0.4 percent at 16,883.92 points.

STOCKS TO WATCH
* Zenith Infotech Ltd after it said it has
defaulted on its $33 million foreign currency convertible bonds
which was due on Sept. 21, 2011 and is in negotiations with the
bondholders to extend the time for repayment.
* Lupin Ltd after it launched blood sugar lowering
drug metformin hydrochloride in the United States.

* SpiceJet after it said it had allotted 35.9
million shares at a premium of 26.48 rupees to Kalanithi
Maran, promoter of the company.

FACTORS TO WATCH
* Indian rupee report
* Indian bond report
* Euro knocked by Spain downgrade, China CPI eyed
* Brent snaps six-day rally as China imports fall
* Asia shares edge lower on caution over growth
* JPMorgan drags blue chips down; Google up late
* For closing rates of Indian ADRs
(Reporting by Sumeet Chatterjee and Nandita Bose; Editing by
Ranjit Gangadharan)

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