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Sensex, Nifty Poised For A Firm Opening

Indian shares may open a tad higher on Wednesday even as cautious undertone may prevail on concerns that India's economic growth will be severely hit too due to the coronavirus pandemic and the nation-wide lockdown.

More than 5,200 new virus cases were reported from across the country on Tuesday, marking the biggest single-day jump in infections so far.

As economic conditions worsen, non-banking financial companies (NBFCs) in the country are more vulnerable to the risks brought on by the Covid-19 disruption than banks, rating agency Moody's said on Tuesday.

Meanwhile, foreign brokerage Barclays predicted that India will likely have a
record current account surplus of about $20 billion or 70 bps of the GDP in FY 21.

Benchmark indexes Sensex and the Nifty pared early gains to end up around half a percent on Tuesday, while the rupee appreciated by 25 paise to settle at 75.66 against the U.S. dollar.

Asian markets are trading mixed this morning as diplomatic tensions between Australia and China escalated and economic indicators pointed to more signs of recession. China held its benchmark lending rate steady, as widely expected.

The dollar edged higher and gold held steady while oil prices traded mixed after Federal Reserve Chair Jerome Powell said that layoffs by state and local governments will slow the U.S. economic recovery.

U.S. stocks fell overnight after top U.S. economic officials warned the U.S. economy faces irreparable damage from the coronavirus.

While Fed Chair Jerome Powell called for additional fiscal stimulus, U.S. Treasury Secretary Steven Mnuchin warned the economy risks suffering "permanent damage".

The Dow Jones Industrial Average tumbled 1.6 percent, the tech-heavy Nasdaq Composite slid half a percent and the S&P 500 lost 1.1 percent.

European markets ended mostly lower on Tuesday after vaccine experts expressed skepticism about the Covid-19 vaccine trial results announced by Moderna Inc.

The pan European Stoxx 600 gave up 0.6 percent. The German DAX edged up 0.2 percent, while France's CAC 40 index shed 0.9 percent and the U.K.'s FTSE 100 declined 0.8 percent.

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