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Sensex, Nifty Seen Steady After Wall Street Bounce

Indian shares look set to open on a positive note Wednesday, although underlying sentiment may remain cautious on lingering trade worries and uncertainty about the outcome of general election.

The final phase of election gets over on May 19 and the counting of votes will take place on May 23.

Benchmark indexes Sensex and the Nifty climbed around 0.6 percent and 0.7 percent, respectively on Tuesday to snap a nine-day losing streak while the rupee recovered by 7 paise to close at 70.44 against the dollar.

Asian stocks struggled near three-and-a-half-month low as investors braced for a protracted U.S.-China trade war. Disappointing retail sales and industrial production data from China also weighed on markets.

The dollar index held flat while oil prices eased in Asian trading after the American Petroleum Institute (API) reported a bigger-than-expected build in crude oil inventory.

U.S. stocks rose overnight amid bargain hunting after President Trump indicated that he would be meeting with Chinese President Xi Jinping at the G20 Summit in Japan late next month.

The Dow rose 0.8 percent to rebound from its lowest closing level in three months, while the tech-heavy Nasdaq Composite surged 1.1 percent and the S&P 500 added 0.8 percent.

European markets also regained some ground on optimism the U.S. and China will eventually reach a trade deal despite the retaliatory tariffs announced by China.

The pan European Stoxx 600 gained 1 percent. The German DAX advanced 1 percent, France's CAC 40 index rallied 1.5 percent and the U.K.'s FTSE 100 added 1.1 percent.

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