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Sensex, Nifty Seen Higher After Upbeat Data

Indian shares may open notably higher on Wednesday after factory output and retail inflation data painted a positive picture of the economy.

Official data released after market hours on Monday showed that India's consumer price inflation slowed in January as food prices softened. Consumer price inflation slowed to 5.07 percent from 5.21 percent in December.

Another report showed that industrial output grew more than expected in December. Industrial production expanded 7.1 percent year-on-year in December, beating forecasts for 6 percent growth. Nonetheless, this was slower than the revised 8.8 percent growth registered in November.

Positive global cues and subdued oil prices may also offer some support as investors await earnings from the likes of Sun Pharma, Allahabad Bank, Grasim Industries, Jet Airways and Nestle India.

Asian stocks are trading mixed this morning despite U.S. stocks closing higher for a third straight session on Tuesday ahead of a slew of economic data due this week, including the U.S. consumer price inflation report.

The Dow inched up 0.2 percent overnight, the Nasdaq Composite rose half a percent and the S&P 500 gained 0.3 percent.

European markets ended Tuesday's session in the red as earnings proved to be a mixed bag and the euro strengthened against the dollar.

The pan-European Stoxx Europe 600 index declined 0.6 percent. The German DAX dropped 0.7 percent, France's CAC 40 index shed 0.6 percent and the U.K.'s FTSE 100 slid 0.1 percent.

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