Markets weekahead: Earnings, inflation key for Indian shares

Reuters Market Eye - December quarter earnings and WPI inflation will be the key for Indian shares in the short term.

MCX-SX stock exchange launches equities trading. Volumes will be watched given its history of competition with the National Stock Exchange.

Dealers say any headline inflation reading of 7 percent or lower may lead to gains in shares on hopes of a March rate cut.

Also on watch, domestic institutional outflows where pace of selling has accelerated in 2013, relative to inflows from foreign investors.

KEY EVENTS/FACTORS TO WATCH

Saturday: Finance Minister P. Chidambaram, SEBI Chairman U.K.Sinha at the launch of MCX-SX stock exchange.

Monday: Earnings of Oil and Natural Gas Corp , Tata Power Co

Tuesday: December IIP, January CPI, earnings of Hindustan Petroleum Corp , SAIL

Wednesday: Bharat Petroleum Corp , Tata Steel earnings

Thursday: January WPI inflation, earnings of Dr.Reddy's Laboratories , Tata Motors , State Bank of India, GAIL India , DLF

(Reporting by Abhishek Vishnoi)