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Sensex, Nifty Set To Open Lower On Weak Asian Cues

Indian shares look set to open a tad lower on Monday as investors react to mixed earnings results from Reliance Industries and HDFC Bank.

Reliance Industries reported a 6.8 percent year-on-year increase in net profit for the June quarter despite weak global macro-economic environment and challenging hydrocarbon market conditions.

HDFC Bank's Q1 profit jumped 21 percent but provisions rose to Rs 2,613.7 crore for the quarter under review from Rs 1,629.4 crore in the corresponding period last year.

Several frontline companies such as Bajaj Auto, Bank of Baroda, Canara Bank, DHFL, HUL, Kotak Mahindra, Maruti Suzuki and Tata Motors will unveil their quarterly earnings this week.

Besides earnings growth, sentiment this week may be swayed by the expiry of derivatives contracts, oil price movements, progress of monsoon rains and expectations surrounding the Federal Reserve meeting.

Asian markets are trading lower this morning as Nasdaq-style technology board on the Shanghai Stock Exchange marked its debut and Japan's ruling coalition retained its majority in elections for the upper house of Parliament.

Geopolitical tensions remain high after Iran said it seized a British-flagged oil tanker in the Strait of Hormuz last Friday.

The U.S. dollar held recent gains while oil extended gains amid rising tensions in the Middle East.

U.S. stocks fell on Friday as investors digested a slew of corporate earnings reports and remarks from a top Fed official dampening hopes of a near-term interest rate cut.

The Dow dropped 0.3 percent, the tech-heavy Nasdaq Composite shed 0.7 percent and the S&P 500 gave up 0.6 percent.

European markets ended Friday's session slightly higher as traders awaited clarity on whether the Fed will cut interest rates later this month.

The pan European Stoxx 600 edged up 0.1 percent. The German DAX rose 0.3 percent, France's CAC 40 index finished marginally higher and the U.K.'s FTSE 100 gained 0.2 percent.

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