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Sensex, Nifty Seen Higher On Global Cues

Positive global cues may help Indian shares open higher on Tuesday, although underlying sentiment may remain cautious amid continued rise in oil prices, renewed selling by foreign funds and rising coronavirus cases in the country.

The total number of coronavirus cases in India topped the 100,000-mark as several states announced easing of restrictions for the extended lockdown in force till May 31.

U.S. brokerage Goldman Sachs expects the Indian economy to contract by 5 percent in FY21, marking the worst performance by the country ever.

On the earnings front, Bharti Airtel reported net loss (after exceptional items) of Rs. 5,237 crore in the fourth quarter ended March, compared with a net loss of Rs. 1,035 crore in the third quarter.

Benchmark indexes Sensex and the Nifty fell over 3 percent on Monday as disappointment over the government's Rs. 20 lakh crore economic stimulus package overshadowed positive cues from global markets. The rupee plunged 33 paise to close at 75.91 against the dollar.

Asian markets edged higher this morning and oil extended gains on hopes for a near-term economic recovery, while Treasury yields held near five-week highs.

Concerns over the coronavirus persist as the total number of global Covid-19 cases surpassed 4.8 million, including more than 320,000 fatalities.

The World Health Organization on Monday bowed to calls from most of its member states to launch an independent probe into the response to the pandemic saying learning was important.

Chinese President Xi Jinping also backed the review of global health response to Covid-19, but said such an evaluation should happen only after the pandemic was over.

U.S. stocks soared overnight after Moderna reported "positive" phase one results from the first human study of its experimental coronavirus vaccine.

The Dow Jones Industrial Average climbed 3.9 percent, the tech-heavy Nasdaq Composite surged 2.4 percent and the S&P 500 jumped 3.2 percent.

European markets also closed sharply higher as oil extended its rally, the latest data showed slowing virus growth and investors digested comments from Fed Chair Jerome Powell about the prospects for the U.S. economy to recover in the medium term.

The pan European Stoxx 600 jumped 4.1 percent. The German DAX spiked 5.7 percent, France's CAC 30 index advanced 5.2 percent and the U.K.'s FTSE 100 added 4.3 percent.

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