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Sensex, Nifty Set To Rebound As Oil Prices Plunge

Indian shares may open higher on Thursday as oil prices plunged on supply worries, helping ease worries over rising inflationary pressures.

Banks could be in focus today after Finance Minister Arun Jaitley hinted that the government may backtrack on some of the controversial provisions in the Financial Resolution and Deposit Insurance (FRDI) bill pending before Parliament.

In another development, the government has notified a format for filing complaints against firms not passing on benefits of lower taxes in the goods and services tax (GST) regime.

Meanwhile, IT major Infosys has submitted a settlement application to the Securities and Exchange Board of India (SEBI) with regard to issues surrounding former CFO Rajiv Bansal's high severance package.

Benchmark indexes Sensex and the Nifty fell around 0.7 percent each on Wednesday and the rupee fell by 14 paise to close at 64.52 per dollar after the RBI left its key interest rates unchanged, saying the risks are evenly balanced and inflation would be in the region of 4.3 percent to 4.7 percent in the third and fourth quarters of this year.

Asian stocks are trading mixed this morning as investors awaited tax reform developments in the U.S. Oil edged higher after falling nearly 3 percent to hit two-week lows on Wednesday as data showed a sharp rise in U.S. inventories of refined fuel. Gold edged lower to hover near a two-month low as the dollar firmed up.

U.S. stocks ended mixed overnight as oil prices plunged and investors fretted about the possibility of violence in the Middle East. Traders largely shrugged off strong ADP private payrolls data.

The Dow slid 0.2 percent and the S&P 500 edged down marginally to register its fourth straight session loss while the tech-heavy Nasdaq Composite rose 0.2 percent.

European markets recouped early losses to end mixed on Wednesday. The pan-European Stoxx Europe 600 index eased 0.1 percent.

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