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Sensex, Nifty Likely To See Positive Start As Recession Worries Ebb

Indian shares look set to open a tad higher on Friday as traders return to their desks after the Independence Day holiday on Thursday.

Falling oil prices and expectations for further rate cuts by the RBI may offer some support as recession concerns mount amid falling bond yields and uncertainty on the trade front.

Oil prices rose in Asian trading after two days of declines as encouraging retail sales figures from the U.S. helped ease some concerns about a recession in the world's biggest economy.

Benchmark indexes Sensex and the Nifty rose around 1 percent on Wednesday as the U.S. announced a delay in the implementation of tariffs on some Chinese products and lower inflation figures for July raised hopes of further cuts in interest rates going forward. The rupee rose by 13 paise to close at 71.27 against the dollar.

Government data released after market hours showed that India's exports grew by 2.25 percent to $26.33 billion in July. Imports fell by 10.43 percent to $39.76 billion, helping narrow the trade deficit to $13.43 billion in the month. The deficit stood at $18.63 billion in July last year.

Asian markets are trading mixed this morning as investors digest conflicting messages on the Sino-U.S. trade war.

U.S. President Donald Trump said the U.S. is having very good discussions with China and the trade dispute would be fairly short. On the other hand, Beijing vowed to counter the latest tariffs on $300 billion of Chinese goods but called on the United States to meet it halfway on a potential trade deal.

Overnight, U.S. stocks ended mixed as investors watched dropping U.S. Treasury yields and upbeat retail sales data.

The Dow Jones Industrial Average rose 0.4 percent and the S&P 500 gained 0.3 percent while the tech-heavy Nasdaq Composite slid 0.1 percent.

European markets ended lower on Thursday as German and French bond yields hit record lows, spurring fresh concerns of an impending recession.

The pan-European Stoxx 600 declined 0.3 percent. The German DAX shed 0.7 percent, France's CAC 40 index eased 0.3 percent and the U.K.'s FTSE lost 1.1 percent.

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