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Sensex, Nifty Set To Follow Global Markets Lower

Indian shares look set to follow global markets lower on Wednesday after U.S. President Donald Trump fired Secretary of State Rex Tillerson and shut down Broadcom's proposed buyout of Qualcomm, citing concerns over national security, adding to trade tensions between the U.S. and China.

Overnight, the Dow Jones Industrial Average shed 0.7 percent and the tech-heavy Nasdaq tumbled 1 percent to snap a seven-day winning streak while the S&P 500 declined 0.6 percent.

European markets fell sharply on Tuesday as both the euro and pound strengthened against the dollar after the release of tame U.S. inflation data.

The pan-European Stoxx Europe 600 index gave up 1 percent. The German DAX tumbled 1.6 percent, France's CAC 40 index shed 0.6 percent and the U.K.'s FTSE 100 lost 1.1 percent.

Asian stocks continued to pull back, with banks and technology companies coming under selling pressure. Benchmark indexes in Australia, Japan, Hong Kong and South Korea are currently down between 0.6 percent and 1.3 percent.

Gold held steady and the dollar lost ground while oil prices rose slightly in Asian trade after two days of declines.

Closer home, benchmark indexes Sensex and the Nifty swung between gains and losses before closing mixed on Tuesday while the rupee rose by 15 paise to close at 64.89 against the dollar after the release of encouraging industrial output and retail inflation data.

The Supreme Court on Tuesday extended indefinitely the March 31 deadline for mandatory linking of Aadhaar with bank accounts and mobile phones, but said the order will not apply to the deadline for subsidies and benefits under Section 7.

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