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Sensex, Nifty Seen Lower On Weak Data

Indian shares may open lower on Monday as weak core sector output and GDP data raised concerns over the health of the domestic economy,

India's economic growth slowed further in the three months to September, and the pace of expansion was the weakest in over six years as manufacturing and exports remained weak amid the global slowdown, official data showed on Friday.

GDP grew 4.5 percent year-on-year in the July to September quarter after a 5 percent expansion in the three months to June. Economists had forecast 4.7 percent growth for the September quarter. In the same quarter of 2018-19, growth was 7 percent.

Meanwhile, output of eight core infrastructure industries contracted by a record 5.8 percent in October as a broad-based decline gripped almost all industries.

Cumulative growth till October in the current fiscal year stood at only 0.2 percent, compared with 5.4 percent in the previous year.

As economic growth slows sharply, the Reserve Bank of India (RBI) is expected to cut interest rates in the forthcoming monetary policy review on December 5.

There is some good news on the revenue front as Goods and Services Tax (GST) collection reversed a two-month contraction to cross the Rs. 1 trillion mark in November on the back of festival demand and implementation of anti-evasion measures.

Telecom stocks may rise across the board today after Vodafone Idea, Bharti Airtel and Reliance Jio all hiked mobile and data tariffs by up to 42 percent in an attempt to tide over the crisis in the telecom sector.

Asian stocks are trading higher this morning after official data showed China's November factory activity rebounded for the first time in seven months. A private survey of Chinese factory activity also came in stronger than expected.

On the trade front, Axios reported Sunday, citing sources that the interim U.S.-China trade deal is now "stalled because of Hong Kong legislation" and a "phase one" agreement would only happen "year-end at the earliest."

Separately, Chinese state media said Sunday that Beijing wants a rollback of tariffs in the phase one trade deal that the two economic powerhouses are aiming to reach.

Gold prices dipped on a firmer dollar while U.S. West Texas Intermediate crude oil futures jumped around 1.7 percent after plunging more than 5 percent on Friday.

U.S. stocks ended a holiday-shortened session lower on Friday amid increased U.S.-China trade friction after Beijing said it would take strong counter-measures in response to the U.S. interference in China's internal affairs.

The Dow Jones Industrial Average and the S&P 500 dropped around 0.4 percent while the tech-heavy Nasdaq Composite shed half a percent.

European markets also fell on Friday after reports suggested that China is considering to put the drafters of the Hong Kong Human Rights and Democracy Act on its no-entry list.

The pan-European Stoxx Europe 600 index gave up 0.4 percent. The German DAX and France's CAC 40 index both edged down around 0.1 percent while the U.K.'s FTSE 100 declined 0.9 percent.

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