Morning Update for 28 February 2022

Indices at previous closing

Nifty50: 16,658 ▲410 (+2.5%)

Sensex: 55,858 ▲1,328 (+2.4%)

Nifty Bank: 36,430 ▲1,202 (+3.4%)

For more updates on F&O, click here.

Reliance takes over Future Retail stores

As per the reports, the retail arm of Reliance Industries has taken over 200 Future Retail stores. This comes after the Future Group failed to make lease payments for its stores, which were sublet to it by Reliance. The oil-to-retail conglomerate has stepped in and has started rebranding these stores.

It’s important to note that since 2020, Reliance has been in a tussle with Amazon over the acquisition of the retail and logistics business of the Future Group. Meanwhile, shares of Future Retail were up around 6% on Friday.

Govt allows 20% FDI in LIC

According to the reports, the Indian government has allowed 20% of foreign direct investment (FDI) in LIC under the automatic route. This is expected to help ease the process of divestment of the government's stake in this state-owned life insurer.

Earlier, there was no specific provision for foreign investment in LIC. The government is reportedly looking to mop up ₹65,000 crore by offloading a 5% stake in the company to meet its disinvestment target for FY22. For more details on LIC IPO, click here.

Gold loses some shine

The yellow metal lost some of its lustre as its prices declined on Friday after the recent rally. Experts believe that gold is running out of momentum and there are concerns that Russia might need to sell this precious metal to support its deteriorating currency. 

Also, experts observe that US sanctions on Russia have been underwhelming in terms of impact. Despite this, they are bullish on gold because inflation is expected to remain elevated and the risk of a slowdown in economic growth could make it difficult for central banks to increase rates.

Sectoral indices (February 25)

Global markets (at 8:00 am today)

Fact of the day

Jack Dorsey initially started the microblogging website Twitter as a side-project while working at Odeo, a podcasting company.

Source: Reuters

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