Zubu Client Sentiment Nifty50 Report:
It is a Post Market Analysis, by which one can understand Retail trader’s sentiment and discover who was going long and short, the percentage change over time, and whether market signals are bullish or bearish.
Nifty50 retail trader data shows 51.73% of traders are net-long, while the number of retail traders net-short was 48.27%. FII’s unwinded huge longs -5594 & shorts -4610, while retailers created decent longs 3119 & shorts 2261.
After a gap-down opening, the markets recovered some ground. However, selling pressure in the second half pulled the markets down, with 31 of the Nifty50 stocks closing in the red. Continuing yesterday’s trend, the Nifty PSU Bank (+5.8%) index remained strong, while Nifty Media (+2.1%) was runner-up among sectoral indices. Meanwhile, the Nifty Pharma (-1.7%) and Nifty IT (-1.2%) indices were the top losers.
Big Basket in Tata’s shopping cart
The Tata Group is in advanced stages to acquire a 68% stake in Supermarket Grocery Supplies, the parent company of Big Basket, as per reports. The stake sale will allow investors such as Alibaba, the International Finance Corporation, and the Abraaj Group to exit Big Basket.
The e-commerce grocery retailer is valued at about ₹13,500 crore, which pegs the stake sale at ₹9,000-9,500. It remains to be seen whether the Group will operate Big Basket as an independent company or as part of an existing business division. However, Tata Consumer Products rose nearly 3% intraday before closing almost flat.
Adani Ports takes over Dighi Port
Adani Ports and Special Economic Zone (APSEZ) has acquired 100% stake in Dighi Port in Maharashtra for ₹705 crore. This is the 12th port in the company’s fold and is one of the key entry points to Maharashtra, which is the highest contributor to India’s GDP.
The company aims to invest ₹10,000 crore in the port to modernise its infrastructure and add rail and road connectivity to it. The APSEZ stock rose 2.7% and was among the top gainers in the Nifty50 today.
Heritage Foods launches French yoghurt brand
Heritage Foods announced that its 50:50 JV with France-based Novandie has commenced commercial production of a yoghurt-manufacturing facility in Maharashtra.
The JV has launched a French yoghurt brand called Mamie Yova in India and it will initially be available in 5 major cities. Shares of Heritage Foods surged 8.1% today amid a lacklustre market.
Even though the markets fell today, the India VIX was largely unmoved. This suggests that traders don’t yet expect any major volatility in the coming days. However, major sectoral indices such as banks, IT, and FMCG closed in the negative today, and the market breadth too was negative. European indices are trading weak today and Dow Jones futures indicate weak opening. Generally, during corrections, investors flock toward large or mega-cap stocks, which provide most resilience toward broad-based selling.