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Indian Shares Set To Rise As Exports Turn Positive

Indian shares may open higher on Friday as official data showed India's exports increased 5.99 percent year-on-year to $27.58 billion in September after contracting for six straight months.

Imports contracted 19.6 percent to $30.31 billion from last year, helping the trade deficit narrow to $2.72 billion. The shortfall was $11.67 billion in the year ago-month.

Stock-specific action is likely amid bets that the government's latest stimulus measures will spur consumer spending over the near term due to easing coronavirus restrictions and festive demand, particularly during Dasara and Diwali.

To bridge the GST compensation shortfall this year, the Centre said it would borrow Rs 1.1 lakh crore in tranches and pass it on to States as a 'back-to-back loan' that will reflect on their own books.

Benchmark indexes Sensex and the Nifty fell 2.6 percent and 2.4 percent, respectively on Thursday amid a global sell-off, while the rupee settled 5 paise lower at 73.36 against the U.S. dollar.

Asian markets are trading mixed this morning as U.S. Senate Majority Leader Mitch McConnell rejected President Donald Trump's push for higher coronavirus stimulus deal.

The dollar headed for its best week of the month while gold remained on track to snap two straight weeks of gains. Oil prices fell on concerns that major producers will move ahead with plans to ease their supply cuts.

U.S. stocks edged lower overnight after data showed new applications for unemployment benefits unexpectedly jumped last week, adding to concerns surrounding fresh coronavirus restrictions in Europe, uncertainty surrounding the upcoming elections and deadlocked stimulus talks.

The Dow Jones Industrial Average plunged more than 330 points before recovering much of the lost ground to end the session down just 0.1 percent after U.S. Treasury Secretary Steven Mnuchin said he will keep trying to reach a deal on coronavirus relief.

The tech-heavy Nasdaq Composite shed half a percent and the S&P 500 eased 0.2 percent.

European stocks slumped on Thursday amid signs that the spread of coronavirus is gathering pace.

The pan European Stoxx 600 plunged 2.1 percent. The German DAX tumbled 2.5 percent, France's CAC 40 index lost 2.1 percent and the U.K.'s FTSE 100 gave up 1.7 percent.

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