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Sensex, Nifty Seen Opening On Cautious Note

Indian shares look set to open on a cautious note Monday as coronavirus fears persist and the earnings season reflected mixed results.

The number of people infected with the new coronavirus in China passed 70,000, with Hubei province, the center of the outbreak, reporting 100 more deaths, bringing the death toll in China to nearly 1,800.

Banks, financial firms and telecom companies could be in focus today after the Supreme Court's order on AGR dues has cast a shadow on the survival of telecom major Vodafone Idea, which is already reeling under financial distress.

Media reports suggest that Bharti Airtel, Vodafone Idea and Tata Teleservices will make some payment for adjusted gross revenue (AGR) dues today to avoid stringent punitive action from the Telecom Department.

Asian markets are trading mixed this morning after data showed the Japanese economy shrank at the fastest pace in six years in the December quarter.

The downside, if any, remained limited after the People's Bank of China unexpectedly lowered rates on the so-called medium-term lending facility as part of efforts to reduce the economic shock from the deadly virus outbreak.

The Bloomberg reported that China will act to cut corporate taxes and unnecessary government expenses as the virus hurts production.

U.S. stocks ended narrowly mixed on Friday but posted weekly gains as concerns over the coronavirus impact eased.

The Dow Jones Industrial Average slid 0.1 percent, while the S&P 500 and the Nasdaq Composite edged up around 0.2 percent after the release of a mixed batch of retail sales, industrial production and consumer sentiment data.

European markets also ended mixed on Friday after Germany reported weak growth data. The pan European Stoxx 600 eased 0.1 percent.

The German DAX ended on a flat note with negative bias, while France's CAC 40 index shed 0.4 percent and the U.K.'s FTSE 100 declined 0.6 percent.

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