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Sensex, Nifty Seen Gap-down As Global Selloff Resumes

Indian shares may come under heavy selling pressure once again on Friday as global equity markets continued to tumble on worries about rising inflation and higher interest rates.

The Dow Jones Industrial Average plunged 4.2 percent to enter correction territory overnight, while the S&P 500 shed 3.8 percent and the Nasdaq Composite slumped 3.9 percent.

European markets also tumbled on Thursday as oil prices plunged and the Bank of England hinted at somewhat earlier and deeper-than-expected rate hikes after standing pat on rates as widely expected.

The pan-European Stoxx Europe 600 index declined 1.6 percent. The German DAX plummeted 2.6 percent, France's CAC 40 index lost 2 percent and the U.K.'s FTSE 100 shed 1.5 percent.

Benchmark indexes in China, Hong Kong, Japan, South Korea and Taiwan are down 2-4 percent this morning after the yield on the 10-year U.S. Treasury note neared its highest levels in four years overnight.

Oil extended losses after falling for the fifth straight day on Thursday while safe-haven assets such as gold and the Japanese yen edged higher on safe-haven buying. On the data front, Chinese consumer and producer price growth slowed last month, matching expectations.

Closer home, benchmark indexes Sensex and the Nifty rose about 1 percent on Thursday after encouraging quarterly results from the likes of ACC, BHEL and Cipla.

The rupee closed marginally higher against the dollar as the oil market downturn helped ease investor concerns surrounding inflation and rising twin deficits.

Oil prices are heading to their worst level in nearly two months in response to oversupply concerns.

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