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Sensex, Nifty Set To Open Lower After Arrest Of Huawei CFO

Indian shares may follow Asian peers lower on Thursday amid growing uncertainty about the global economy and skepticism over the U.S.-China trade deal.

Oil price movements and the direction of rupee may influence trading sentiment as investors look for cues from a closely watched OPEC meeting and the outcome of assembly elections in five states.

Benchmark indexes Sensex and the Nifty fell around 0.7 percent on Wednesday as the Reserve Bank of India (RBI) maintained its "calibrated tightening stance", saying its sees upside risks to the inflation outlook. The rupee, however, rose by 3 paise to close at 70.46 against the dollar.

Banks could be in focus today after the RBI confirmed to extend its open-market debt purchases until March and said it would link interest rates to external benchmark replacing MCLR.

Asian stocks remain broadly lower to extend losses from the previous session after the Federal Reserve said in a report that it is concerned about higher tariffs from a widening trade war, rising interest rates and tight labor markets.

In addition, analysts expect that the arrest of Huawei CFO for possible extradition to the United States will likely escalate tensions between the U.S. and China.

Gold edged higher amid a spike in risk aversion while the dollar and oil prices eased in Asian trade.

U.S. markets remained closed overnight due to a national day of mourning for former U.S. President George H.W. Bush.

European markets fell sharply on Wednesday, with fears of economic slowdown, confusion over the U.S.-China trade truce and Brexit-related uncertainty weighing on markets.

The pan-European Stoxx Europe 600 index shed 1.2 percent. The German DAX also lost 1.2 percent, while France's CAC 40 index and the U.K.'s FTSE 100 declined 1.4 percent.

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