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Sensex, Nifty Seen Lower Ahead Of RBI Policy Outcome

Indian shares are likely to open a tad lower on Wednesday ahead of the RBI monetary policy later today, with economists expecting a relatively hawkish tone given the recent concerns over inflation and fiscal deficit.

Weak global cues and opinion polls indicating tough fight for the BJP in Gujarat may also serve to keep underlying sentiment cautious.

Meanwhile, as part of its mid-term review of the foreign trade policy (FTP) for 2015-20, the government on Tuesday announced fresh incentives worth Rs 8,450 crore a year to exporters.

Benchmark indexes Sensex and the Nifty closed marginally lower on Tuesday while the rupee closed little changed at 64.38 per dollar.

Asian stock markets are mostly lower this morning and the dollar dipped against its rivals while oil prices dropped on API data showing a rise in U.S gasoline stocks and distillate inventories last week.

U.S. stocks closed in the red overnight amid reports about disagreements over a corporate alternative minimum tax in the tax bill. Disappointing trade balance and services sector data also weighed on markets.

The Dow dropped half a percent, the Nasdaq Composite slid 0.2 percent and the S&P 500 shed 0.4 percent.

European markets also ended Tuesday's session lower amid Brexit uncertainty.
The pan-European Stoxx Europe 600 index shed 0.2 percent.

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