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Sensex, Nifty Look Set To Extend Losses

Indian shares look set to open lower on Tuesday to extend losses from the previous session on concerns that a slew of proposals in the Budget could lead to flight of foreign funds from the domestic markets.

It is expected that Friday's proposal to raise the tax burden on the mega-rich could affect about 2,000 foreign funds that are legally equivalent to associations of persons (AOP), a class of income earners required to pay more taxes after new liability slabs were created in the federal budget.

Benchmark indexes Sensex and the Nifty plunged around 2 percent on Monday as several proposals in Nirmala Sitharaman's Budget spooked investors.

The rupee fell by 24 paise to close at 68.66 against the greenback, snapping a three-day winning streak.

Asian stocks are moving lower this morning as investors looked ahead to Fed Chairman Jerome Powell's testimony before Congress later in the week for clues on U.S. monetary policy.

The dollar held near multi-week highs while oil fell for the first time in a week on concerns over the outlook for demand.

U.S. stocks ended lower for a second straight session overnight as optimism waned about an interest-rate cut at the Federal Reserve's next meeting, set for July 30-31.

The Dow dropped 0.4 percent, the tech-heavy Nasdaq Composite shed 0.8 percent and the S&P 500 declined half a percent.

European markets edged lower on Monday, with fading hopes of Fed rate cuts, rising geopolitical tensions and uncertainty over the U.S.-China trade war weighing on sentiment.

The pan European Stoxx 600 ended flat with a negative bias. The German DAX dipped 0.2 percent, while France's CAC 40 index and the U.K.'s FTSE 100 both eased around 0.1 percent.

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