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Sensex, Nifty Set To Tumble As Oil Prices Soar

Indian shares look set to open deep in the red on Monday as oil prices surged and key states have expressed reservations on a cut in the goods and services tax (GST) rate for the auto sector.

Union minister Nitin Gadkari on Saturday said that the automobile industry, was passing through "difficult times" and it was a "cause of concern", but added it was a passing phase due to global meltdown and would "get over soon".

Meanwhile, global oil prices have surged the most on record after a strike on a Saudi Arabian oil facility removed about 5 percent of global supplies, an attack the U.S. has blamed on Iran.

U.S. crude oil jumped more than 10 percent on the New York Mercantile Exchange and Brent crude futures were up as much as 13 percent in the wake of the attack on Saudi Arabia's largest oil processing plant.

Asian markets are trading mixed this morning as a cut in the reserve requirement ratio for banks by the People's Bank of China went into effect and data showed growth in industrial output from Chinese factories fell to a fresh low in August amid the ongoing trade war between Beijing and Washington.

U.S. stocks ended mixed on Friday and the dollar slipped as Treasury yields jumped to six-week highs on the back of easing trade tensions and upbeat economic data.

The Dow Jones Industrial Average inched up 0.1 percent while the tech-heavy Nasdaq Composite dropped 0.2 percent and the S&P 500 edged down marginally.

European markets ended Friday's session higher, a day after the ECB announced a new quantitative easing program in a bid to reinvigorate the ailing euro zone economy.

The pan-European Stoxx 600 advanced 0.3 percent. The German DAX rose half a percent, France's CAC 40 index edged up 0.2 percent and the U.K.'s FTSE 100 added 0.3 percent.

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