BSE Sensex seen opening up; GVK Power may rise

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NEW DELHI (Reuters) - The BSE Sensex is likely to start higher on Tuesday but is expected to be rangebound as investors remain cautious after the main index posted its biggest one-day slide in five months in the previous session due to high global oil prices.

Although world oil prices pulled back on Monday, they remain high and there is talk the state-run refiners could raise prices of petrol and diesel soon, traders said.

"Investors will remain cautious and there is no major trigger that can take the market convincingly in any direction," said Arun Kejriwal, strategist at research firm KRIS.

GVK Power and Infrastructure is likely to rise after the Mint newspaper cited unnamed sources as saying the company is in talks with UK-based BG Group to sell stake in seven oil and gas blocks off India's west coast. Neither companies could be immediately reached for a comment.

The MSCI's measure of Asian markets other than Japan was up 0.38 percent by 0237 GMT, while the Nifty India stock futures index in Singapore was up 0.61 percent, indicating a higher start for Indian shares.

On Monday, the 30-share BSE index fell 2.7 percent, extending last week's 2 percent drop that was its first weekly decline in 2012.

STOCKS TO WATCH

* Gitanjali Gems could gain after a top official told Reuters the company is close to acquiring a jewellery retail company in China and hopes to announce a deal in the next 2-3 months.

* Unitech Ltd is likely to fall as a dispute over a joint venture with Norway's Telenor escalated with both the companies filing petitions before the Company Law Board.

* Shasun Pharmaceuticals Ltd could rise after the company's board approved issuing of up to 6.6 million shares, totalling about 500 million rupees, to Caduceus Asia Mauritius Ltd.

(Reporting by Sanjeev Choudhary and Rajesh Kurup; Editing by Ranjit Gangadharan)