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Sensex, Nifty Set For Muted Start

Indian shares are set to open largely unchanged on Monday, with concerns over a delayed and deficient monsoon as well as India's decision on Saturday to hike customs duties on as many as 28 U.S. products likely to keep underlying sentiment cautious.

The tardy progress of the monsoon has raised worries over the prevailing drought situation in several states. Monsoon is expected to progress in the next 2-3 days after Cyclone Vayu crosses the Gujarat coast on Monday.

Meanwhile, increased tariffs on 28 categories of imports from the United States went into effect Sunday morning in an escalating trade battle between the two countries.

Asian markets are trading mixed this morning as investors awaited the outcome of a Federal Reserve meeting on June 19 for directional cues. The overall tone is expected to be dovish, with interest-rate cuts expected at some point this year.

The U.S.-China trade spat remains in focus, with the Bloomberg reporting that
Huawei Technologies Co. is preparing for a 40 percent to 60 percent drop in international smartphone shipments as a result of ongoing conflicts.

Elsewhere, Corriere della Sera reported that Italy will ask the European Commission to review the rule that requires member states to keep the budget deficit within 3 percent of GDP.

The dollar hovered near a two-week high while oil prices rose amid mounting Middle East tensions.

U.S. stocks fell slightly on Friday after Broadcom warned of chip demand slowdown, adding to concerns about the impact of the U.S.-China trade dispute. On the data front, reports on retail sales, industrial production and consumer sentiment painted a mixed picture of the world's largest economy.

The Dow edged down 0.1 percent, the S&P 500 slid 0.2 percent and the tech-heavy Nasdaq Composite shed half a percent.

European markets fell on Friday as tensions heightened between the U.S. and Iran. The pan European Stoxx 600 gave up 0.4 percent.

The German DAX dropped 0.6 percent, France's CAC 40 index eased 0.2 percent and the U.K.'s FTSE 100 declined 0.3 percent.

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