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Sensex, Nifty Seen Opening Flat To Lower

Indian shares are likely to open lower on Wednesday after Fitch Ratings cut India's GDP growth forecast for 2021-22 fiscal to 8 percent from 9.5 percent estimated last month and data showed India's fiscal deficit touched 58.6 percent of the budgeted target for the current fiscal year in the first two months through May.

On the positive side, infrastructure output showed signs of bottoming out in May, with production declining 23.4 percent versus April's 37 percent decline.

India's current account balance recorded a marginal surplus of $0.6 billion (0.1 percent of GDP) in Q4 of 2019-20 as against a deficit of $4.6 billion (0.7 percent of GDP) in Q4 of 2018-19 on the back of lower imports.

Meanwhile, as part of Unlock II, the government has extended lockdown in containment zones until July 31, but allowed further relaxations in areas outside of these containment zones.

Benchmark indexes Sensex and the Nifty gave up early gains to end on a flat note Tuesday, while the rupee gained 7 paise to close at 75.51 against the U.S. dollar.

Asian markets remain mostly higher this morning on continued optimism for an economic recovery after U.S. Treasury Secretary Steven Mnuchin and Federal Reserve Chairman Jerome Powell pledged to do more for the U.S. economy.

The United States may soon record as many as 100,000 new cases of Covid-19 a day if the current trajectory of the outbreak is not changed, the government's top infectious disease expert Anthony Fauci warned as new U.S. Covid-19 cases rose by more than 47,000 on Tuesday.

President Donald Trump has tweeted about the spread of the coronavirus and his anger towards China. "As I watch the Pandemic spread its ugly face all across the world, including the tremendous damage it has done to the USA, I become more and more angry at China. People can see it, and I can feel it!"

The dollar held onto gains against the yen and gold hovered near an eight-year high, while oil prices rose about 1 percent after industry data showed crude inventories in the United States fell much more than expected.

U.S. stocks rose overnight as investors weighed better-than-estimated economic data against concerns over rising coronavirus cases and worsening U.S.-China trade relations.

The Dow Jones Industrial Average rose 0.9 percent to post its biggest quarterly gain since 1987, while the tech-heavy Nasdaq Composite rallied 1.9 percent and the S&P 500 climbed 1.5 percent.

European stocks ended Tuesday's session on a mixed note after the World Health Organization warned that the worst of the coronavirus pandemic is still to come.

The pan European Stoxx 600 edged up 0.1 percent. The German DAX rose 0.6 percent, while France's CAC 40 index slid 0.2 percent and the U.K.'s FTSE 100 dropped 0.9 percent.

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