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Sensex, Nifty Seen Lower As IMF Cuts Growth Forecast

Indian shares are set to open lower on Tuesday after the International Monetary Fund cut the global growth forecasts for this year and next, primarily reflecting negative surprises to economic activity in a few emerging market economies, notably India, which led to a reassessment of growth prospects over the next two years.

Global growth for this year is projected at 3.3 percent, which is 0.1 percentage point less than the forecast made in October, the international lender said in the latest update to its World Economic Outlook report.

The fund revised downward its forecast for India in 2019 to 4.8 percent from its October projection of 6.1 percent.

Benchmark indexes Sensex and the Nifty scaled record highs during the early morning deals on Monday before reversing course to end the session down around 1 percent each. The rupee slipped 3 paise to close at 71.11 against the U.S. dollar.

Asian stocks edged lower in muted trade this morning after a 89-year-old man has become the fourth person to die in China from a new virus that has spread across the country.

France and the U.S. have agreed to extend negotiations on a dispute over a French tax on digital giants to the end of the year, helping limit losses across the region.

The dollar pared gains after recent gains ahead of key central bank meetings this week and gold held near a two-week high, while oil extended gains on supply concerns after Libya declared force majeure on two major oilfields following a military blockade and protests escalated in Iraq.

U.S. markets were closed Monday in observance of the Martin Luther King Jr. holiday.

In Europe, stocks finished slightly lower ahead of a gathering of policymakers and business leaders in Davos, Switzerland for the annual World Economic Forum conference.

The pan-European Stoxx 600 edged down 0.1 percent. France's CAC 40 index shed 0.4 percent and the U.K.'s FTSE 100 eased 0. 3 percent, while the German DAX rose 0.2 percent.

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