Indian shares fall as Ukraine crisis deepens; GDP data in focus

Future Enterprises

28/02/2022 05:31

(Updates index levels, adds details, analyst comment and stock
moves)
    By Rama  Venkat
    BENGALURU, Feb 28 (Reuters) - Indian stocks dropped on
Monday, with investors joining a global flight from risky assets
on worries over fresh sanctions on Russia, while shares of
Future Group companies surged after reports that Reliance would
take over Future Retail stores.
    Investor focus was also on domestic economic growth data due
later in the day.
    The blue-chip NSE Nifty 50 index  .NSEI  was 1.16% down at
16,465.45, as of 0455 GMT, and the S&P BSE Sensex  .BSESN 
dropped 1.23% to 55,168.67. 
    "Since there is a drag on the (Russia-Ukraine) crisis as no
negotiations have been made yet between the parties, the equity
market is volatile today and a surge in crude prices is also an
overhang on the Indian market," said Samrat Dasgupta, chief
executive officer at Esquire Capital Investment Advisors.    
    India's GDP data is set to be released at 1200 GMT. The
country's economy likely grew 6% year-on-year during the three
months ended December 2021, slower than the previous two
quarters, with fears growing over slowing momentum after
Russia's invasion of Ukraine, a Reuters survey of economists
showed last week.  urn:newsml:reuters.com:*:nL4N2UX359 
    Oil prices jumped over $100 a barrel on Monday after further
sanctions were imposed on Russia, heightening fears that oil
shipments from the world's second-largest producer could be
disrupted.  O/R 
    India is the world's third-largest importer of oil, and high
global prices percolate through the economy and hurt consumers,
while also widening the country's current account deficit. The
Nifty Energy index  .NIFTYENR  was 0.35% higher. 
    Among individual stocks, Future Group companies such as
Future Consumer  FTRE.NS , Future Enterprises  FURE.NS , Future
Retail  FRTL.NS  and Future Supply Chain Solutions  FUTE.NS 
soared as much as between 8% and 16%. 
    Media reports said Reliance Industries  RELI.NS  would take
over at least 200 Future Retail stores after the debt-laden
group failed to make lease payments.  urn:newsml:reuters.com:*:nL4N2V31HL
    Nifty's financial services sector index  .NIFTYFIN  and the
auto index  .NIFTYAUTO  were among the top decliners, falling
1.89% and 1.65%, respectively.
        

 (Reporting by Rama Venkat in Bengaluru; Editing by Sherry
Jacob-Phillips)
 ((ramavenkat.raman@thomsonreuters.com; https://twitter.com/ramavenkat0607;))