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Indian Shares Seen Higher At Open

Positive global cues may help Indian shares open higher on Friday, though underlying sentiment may remain cautious on worries over growth and the widening of the fiscal deficit.

India's real GDP in FY21 could be 7.7 percent lower than in FY20 and 3.9 percent lower than even the FY19 level in absolute term, the National Statistical Office (NSO) forecast.

India's fiscal deficit for year ending in March is likely to be over 7 percent of GDP, Reuters said citing sources as revenue collections suffered from a lockdown and restrictions to rein in the spread of Covid-19.

Based on the first set of advance growth estimates released by the government, the Centre's fiscal deficit will touch at least 6.1 percent of GDP in FY21.

Tata Consultancy Services will report its third quarter results later today, with analysts expecting strong revenue growth quarter-on-quarter though margins may get impacted by wage revision.

Benchmark indexes Sensex and the Nifty fell slightly on Thursday to extend losses for a second day running, while the rupee ended down 20 paise at 73.31 amid rising oil prices and a rebound in the American currency.

Asian markets are moving higher this morning and the dollar extended overnight gains while oil hovered near 11-month highs hit the previous day.

U.S. stocks climbed toward record highs overnight as the Capitol building was finally secured and lawmakers certified President-elect Joe Biden's victory, giving Democrats control of the House, Senate and the White House.

Encouraging jobless claims and service sector activity data also buoyed sentiment.

The tech-heavy Nasdaq Composite jumped as much as 2.6 percent, while the S&P 500 rallied 1.5 percent and the Dow Jones Industrial Average rose 0.7 percent.

European stocks rose on Thursday on optimism that a Democratic-controlled government in the U.S. will lead to additional stimulus.

The pan European Stoxx 600 added half a percent. The German DAX rose 0.6 percent and France's CAC 40 index gained 0.7 percent ahead of the rollout of Moderna vaccine in the European Union nations.

The U.K.'s FTSE 100 inched up 0.2 percent amid speculation that the Bank of England is moving toward negative interest rates.

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