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Sensex, Nifty To Open Lower On Weak Global Cues

Indian shares look set to open lower on Monday, mirroring weak global cues as a strong U.S. jobs report pushed bond yields higher and added to worries about rising interest rates.

While the Labor Department report showed weaker than expected job growth in September, a significant upward revision to the pace of job growth in August and a fall in the jobless rate to its lowest level since 1969 kept the Fed firmly on track to continue raising rates once a quarter, with the next hike likely to come in December.

A weakening rupee and the announcement of assembly elections for five states may also keep investors nervous after heavy losses last week.

The benchmark BSE Sensex plunged 5.1 percent last week and the Nifty gave up 5.6 percent, with oil marketing companies pacing the declines after the government asked the companies to absorb Rs 1 cut in fuel prices. The RBI's status quo decision on rates also weighed on markets.

On the data front, IIP data for August and retail inflation numbers for September will be released on Friday as investors look for clues on the health of the economy.

India's GDP growth is firming up following temporary disruptions due to demonetization and introduction of the GST, the World Bank said in a report. The global lender pegged India's growth at 7.3 percent in the 2018-19 fiscal and 7.5 percent in the next two years.

The quarterly earnings season gets underway this week, with Hindustan Unilever, Tata Consultancy Services and Zee Entertainment among the prominent companies due to unveil their financial results.

Meanwhile, oil prices fell about 1 percent in Asian trade after reports that the U.S. is considering granting some waivers on sanctions against Iran for nations that have shown some efforts to reduce their imports of Iranian oil. There was also chatter that Saudi Arabia has replaced all of Iran's lost oil.

Asian markets fell this morning, with China's Shanghai Composite index leading regional losses to fall by as much as 3 percent as the People's Bank of China loosened its monetary policy in a bid to shore up the economy amid a worsening trade war.

U.S. stocks finished lower on Friday on worries about rising interest rates. The Dow dropped 0.7 percent, the tech-heavy Nasdaq fell 1.2 percent and the S&P 500 shed 0.6 percent.

European markets also ended deep in the red on Friday amid concerns surrounding Italy, rising bond yields and Brexit uncertainty.

The pan-European Stoxx Europe 600 index declined 0.9 percent. The German DAX tumbled 1.1 percent, France's CAC 40 index lost 1 percent and the U.K.'s FTSE 100 slumped 1.4 percent.

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