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Sensex, Nifty Likely To See Subdued Start

Indian sharers look set to open flat to slightly lower on Friday as investors fret about the liquidity crisis plaguing non-banking finance firms and slowing global growth.

Traders will also keep an eye on oil price movements for direction. Both Brent crude futures and U.S. West Texas Intermediate crude futures extended gains in Asian trading after climbing 1.7 percent and 1.8 percent, respectively on Thursday amid indications that OPEC and allies may extend crude supply cuts.

Benchmark indexes Sensex and the Nifty tumbled around 1.4 percent and 1.5 percent, respectively on Thursday to post their biggest one-day fall this year.

The Reserve Bank of India (RBI) cut the repo rate by 25 bps, as widely expected, but slashed the economic growth forecast for the current fiscal to 7 percent, citing a slowdown in domestic demand and escalation in global trade war.

There was also some concern about the crisis in the non-banking financial companies' (NBFCs) sector, as the RBI failed to announce any concrete decision to address liquidity issues in the system.

Asian stocks are trading mixed amid thin volumes ahead of a U.S. jobs report due out later in the day.

Overnight, U.S. stocks rose for the third day running after the Bloomberg said
the U.S. is considering delaying President Trump's threatened tariffs on Mexico.

The Dow gained 0.7 percent, the tech-heavy Nasdaq Composite added half a percent and the S&P 500 inched up 0.6 percent.

European markets ended Thursday's session on a mixed note after the ECB pushed back the timing of its first post-crisis interest rate hike until at least the middle of next year and U.S. President Trump threatened to raise tariffs on China by another $300 billion if necessary.

The pan European Stoxx 600 edged down marginally. The German DAX slid 0.2 percent and France's CAC 40 index dropped 0.3 percent while the U.K.'s FTSE 100 rose 0.6 percent.

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