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Sensex, Nifty Seen Opening On Flat Note

Indian shares may open flat to slightly higher on Monday as the monsoon rains try to catch up to the delay faced since June 1.

The Southwest monsoon has picked up pace over the weekend, nearly covering 10 states and entering two more within a span of four days.

On the flip side, rising oil prices, caution ahead of the upcoming Budget, geopolitical tensions in West Asia and the expiry of June series derivative contracts due on Thursday may keep markets volatile.

On the data front, both May fiscal deficit numbers and infrastructure output data will be released on Friday.

An industry survey showed that overall sentiment remained subdued in India's manufacturing sector in the first quarter of 2019-20, due to subdued domestic and export demand.

The benchmark BSE Sensex dropped 0.7 percent last week while the broader Nifty index declined 0.8 percent.

Asian markets remain subdued this morning as investors looked for any signs of a thaw in Sino-U.S. trade negotiations at this week's G20 meeting in Japan.

A planned speech by U.S. Vice-President Mike Pence in which he was expected to criticize China's human rights record has been postponed, helping increase optimism on upcoming talks.

The euro hit a three-month high against the dollar, while oil prices held firm near three-week highs hit last week as the U.S. mulls significant sanctions on Iran.

U.S. stocks ended modestly lower on Friday after the Commerce Department barred five additional Chinese companies from buying U.S. components without approval.

The Dow and the S&P 500 slid around 0.1 percent while the tech-heavy Nasdaq Composite shed 0.2 percent.

European markets ended Friday's session lower amid intensifying fears of a military confrontation in the Middle East.

The pan European Stoxx 600 eased 0.4 percent. The German DAX and France's CAC 40 index both edged down by 0.1 percent while the U.K.'s FTSE 100 dipped 0.2 percent.

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