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: 15,030 ▼ 77 (-0.5%) Sensex: 49,902 ▼ 290 (-0.5%)
Nifty50 retail trader data shows 55.57% of traders are net-long, while the number of traders net-short was 44.43%. FII’s unwinded huge longs -2135 & huge shorts -4202, while retailers unwinded little longs -1395 & huge shorts -2683.
The markets opened weak, and after some initial buying, the benchmark indices witnessed selling pressure all day. Of the Nifty50 stocks, 27 closed in the red. The Nifty Realty (+2.1%) and Nifty Media (+2.0%) indices witnessed the strongest gains, while Financial Services (-0.9%) and Metal (-0.9%) indices were the weakest today.
Top gainers Today’s change
Coal India ▲ 3.4%
Cipla ▲ 2.0%
Sun Pharma ▲ 1.9%
Top losers Today’s change
Tata Motors ▼ 5.5%
Bajaj Fin Serv ▼ 1.7%
M&M ▼ 1.7%
Jyothy Labs posts stable quarter
The Mumbai-based FMCG company reported a 26% YoY jump in its Q4 revenue from operations, which stood at ₹495 crore. Revenue from the flagship fabric care segment rose about 16%. However, the top line was boosted by the dishwashing and household insecticides segments, which grew over 30% each.
Meanwhile, profit after tax rose 2.6% YoY to ₹27 crore. Profit growth remained muted because of a ₹23.5 crore write-off of excise duty receivable for previous years, which is an exceptional item. The stock was down 4% today and has been trading flat so far this month.
Domestic air traffic drops in April
Domestic airlines carried a total of about 57 lakh passengers in April, a drop of 27% MoM. In April 2020, flight operations were suspended due to Covid.
The average seat occupancy of market leader Indigo dropped from 66% to 58% and that of Spicejet fell from 76% to 70%. However, with a steady decline in new cases, both stocks witnessed buying interest this month. So far this month, shares of Indigo have gained about 2.4% and Spicejet is up 20%.
Adani Green to acquire SB Energy
Adani Green Energy has signed an agreement to fully acquire SB Energy India, which has a 5 GW renewable energy portfolio. This acquisition at an enterprise value of $3.5 billion (~₹26,000 crore) is reportedly the largest M&A transaction in the renewable energy sector in India.
SB Energy India is an 80:20 joint venture between Japan-based SoftBank and Bharti Group. With this acquisition, Adani Green will achieve a total renewable capacity of 24.3 GW and an operating renewable capacity of 4.9 GW. Shares of Adani Green rose 3.5% today and have gained about 22% this month.
NBFCs stare at rising defaults
The second wave has been harsher on NBFCs. Reports suggest that non-banking lenders have seen a 50% rise in customers missing payments in the first half of May.
Most NBFCs have been forced to stop door-to-door collections after a rise in collection agents succumbing to Covid. This has resulted in a drop in collection efficiency during April and May. Some of the top NBFCs like Bajaj Finance (-1.2%), Muthoot Finance (-0.5%) and Shriram Transport Finance (-2.5%) ended weak today.
The markets rose about 3% in the first two days of this week. Today, they witnessed profit booking as banking heavyweights such as HDFC Bank and ICICI Bank took a breather after the recent rally. For the last few months, the Nifty50 has been moving between 14,300 and 15,300 and now stands close to the upper end of the range.
Meanwhile, in the US, the Dow Jones fell 0.7% yesterday and has shown signs of weakness on account of inflation fears. The tech-heavy Nasdaq has already corrected nearly 5% so far this month. At this point, the Indian markets seem to be disconnected from the movements in the major international indices.