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Sensex, Nifty Set To Follow Global Markets Higher

Indian shares look set to open higher on Tuesday as global markets regained some ground amid easing worries about an imminent trade war. Investors also seemed to have brushed off the inconclusive election result in Italy.

The dollar edged higher versus the yen as U.S. President Donald Trump faced growing pressure from political and diplomatic allies to pull back from proposed steel and aluminum tariffs.

Some market participants also view the tariff threats more as a negotiating tactic to get a better deal on NAFTA.

Overnight, U.S. stocks bounced back from early losses to end sharply higher even as Trump took to twitter again to defend the tariffs on steel and aluminum imports and a report showed activity in the U.S. service sector grew at a slightly slower rate in February.

The Dow climbed 1.4 percent to snap a four-session losing streak, while the tech-heavy Nasdaq Composite surged 1 percent and the S&P 500 added 1.1 percent.

European markets also rose on Monday as the euro edged lower and Germany's Social Democratic party voted to join a coalition agreement with Chancellor Angela Merkel. The pan-European Stoxx Europe 600 index gained 1 percent.

Japan's Nikkei index is currently up over 2 percent, while Australia's ASX 200, South Korea's Kospi and Hong Kong's Hang Seng index are up more than 1 percent each.

Closer home, benchmark indexes Sensex and the Nifty fell for a fourth straight session on Monday while the rupee ended higher by 5 paise at 65.12 against the dollar, snapping its three-session losing streak.

Banking stocks could be in focus today after the Reserve Bank of India (RBI) said it would inject additional liquidity of Rs 1 lakh crore in March through longer tenor instruments.

Meanwhile, rating agency CRISIL said in a report that it expects India's GDP to rise "a respectable 7.5 per cent" during the financial year 2018-19, helped by resolution of stressed assets in banking, implementation of reforms and rising global growth.

Reliance Infrastructure has filed an arbitration notice of Rs 5,440.38-crore against Pipavav Defence and Engineering Ltd "for breach of warranties".

IndusInd Bank has invoked 6 crore pledged shares of the crisis-hit Jaypee Infratech.

The Supreme Court has ordered embattled real estate company Unitech to furnish a list of encumbered properties owned by it and its subsidiaries by March 12.

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