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Indian Shares Seen Opening Higher Despite Weak GDP Data

Indian shares are set to open higher on Monday even as weak GDP data and climbing oil prices may trigger some profit taking as the session progresses.

Underlying sentiment may remain supported as some semblance of calm returned to bond markets after last week's wild ride.

Asian markets rallied this morning and oil prices climbed while the dollar slipped after the U.S. House of Representatives passed a $1.9 trillion coronavirus relief package early Saturday.

Profit booking cannot be ruled out at higher levels as lower-than-expected nominal GDP growth heightened the threat of a sovereign downgrade.

The Indian economy expanded in the final three months of 2020, thus exiting a severe recession caused by sharp contractions in the previous quarters due to the impact of one of the harshest lockdowns to battle the coronavirus pandemic.

GDP grew 0.4 percent in the three months to December, data from the statistics ministry showed while the decline in the September quarter was revised to 7.3 percent from 7.5 percent and the contraction in the June quarter was revised to a record 24.4 percent from 23.9 percent.

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