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Sensex, Nifty Set To Extend Selloff

Indian shares look set to open sharply lower on Monday amid worries over rising revenue and fiscal deficits as well as weak cues from Wall Street and Asia after an upbeat jobs report sparked fears of a sharper rise in interest rates.

Asian stocks are down across the board, with benchmark indexes in Hong Kong, Japan and Taiwan losing more than 2 percent. Copper steadied, oil extended Friday's losses and gold prices eased, while a steeper yield curve weighed on the dollar.

U.S. stocks plunged on Friday, the dollar gained ground and oil prices slid on worries about the prospect of higher interest rates after the jobs report for January showed stronger than expected job growth and a jump in wages.

A negative reaction to quarterly results from big name tech companies like Google parent Alphabet and Apple also contributed to the sell-off.

The Dow lost 2.5 percent, the tech-heavy Nasdaq Composite tumbled 2 percent and the S&P 500 declined 2.1 percent.

European markets finished lower for a fifth day running on Friday following a rapid jump in bond yields and weak earnings reports from the likes of Deutsche Bank and Caixa Bank.

The pan-European Stoxx 600 fell 1.4 percent amid across the board selling. The German DAX tumbled 1.7 percent, France's CAC 40 index shed 1.6 percent and the U.K.'s FTSE 100 dropped 0.6 percent.

Closer home, benchmark indexes Sensex and the Nifty plunged over 2 percent on Friday to post their biggest single-day losses in nearly 15 months after the reintroduction of long-term capital gains tax in the Budget.

The RBI policy review is the big event this week, with economists expecting the central bank to tighten its monetary policy stance amid concerns over fiscal slippage.

On the earnings front, Tata Motors, Bosch, Hero Moto Corp, Cipla, BPCL, HPCL, ONGC, SBI and Tata Steel are among the prominent companies that will unveil their quarterly results this week.

by RTTNews Staff Writer

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