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Thursday, November 16, 2006

Indian shares seen trading sideways


Indian shares are likely to trade sideways on Thursday as investors pause after a run to record highs, with leads from other Asian markets subdued ahead of key U.S. data.

But the downside for an index that has hit all-time highs on four successive days should be limited by strong foreign fund flows that have topped $7.7 billion this year.

That has helped the key index <.BSESN> gain 15 percent since the start of September and more than 43 percent so far this year, making it the best performer in Asia-Pacific.

"We are seeing investors turn more cautious at these levels, picking specific stocks and more mid-caps," said Ketan Shah at Prabhudas Lilladher brokerage.

"But there is enough liquidity in the market to keep up the momentum, barring big profit sales."

The 30-share BSE index closed 0.33 percent higher at 13,469.37 points on Wednesday, a record close, after it scaled a record high of 13,506.08 in intra-day trade.

STOCKS TO WATCH

* Hindustan Zinc Ltd. , after it lowered zinc prices by 5.4 percent from Thursday. For details, double-click on [ID:nBOM11742].

* Zandu Pharmaceutical Works Ltd. , ahead of its board meeting to consider an issue of bonus shares.

* Power generation and air conditioning equipment maker Thermax Ltd. , after its net profit rose 39 percent for Sept. quarter from a year ago. For details, double-click on [ID:nBMB002177].

* State-run National Aluminium Co. Ltd. , after it finalised a one-year sale of 240,000 tonnes of alumina. For details, double-click on [ID:nBMA000255].

* BSEL Infrastructure Realty Ltd. , after a top official of the company said its net profit to double and revenue rising 50 percent in 2006/07. For details, double-click on [ID:nBOM215244].

FACTORS TO WATCH * Indian bonds seen pausing ahead of auctions [IN/] * Indian rupee may edge higher on yen strength [INR/] * FOREX-Yen jumps on report China c.bank buying currency [FRX/] * Oil rises on U.S. stock fall, OPEC cut talk [O/R] * GLOBAL MARKETS-Stocks subdued ahead of data, yen jumps

[MARKETS/AS] * STOCKS NEWS ASIA-Tokyo firms on dividend hopes, Australia slips