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 42.7% of traders are net-long, while the number of traders net-short was 57.3%. FII’s created huge longs 6736 & shorts 2566, while retailers created huge longs 2148 & shorts 6736
A quick wrap-up of the highlights this week.
Nifty50 hits a new lifetime high.The benchmark index closed the week on a strong note, hitting new lifetime highs.
The market optimism stems from multiple factors:
Declining cases – daily new cases have now dropped below 2 lakh from over 4 lakh earlier this month.
Easing curbs – several regions are expected to ease lockdown restrictions in the next month.
Fresh stimulus – there is an expectation of a new stimulus package from the government.
Major market movers since Nifty50’s previous high in Feb 2021
Top gainers % change
JSW Steel ▲ 69%
Tata Steel ▲ 58%
UPL ▲ 51%
Top losers Today’s change
Hero Moto ▼ 14%
Bharti Airtel ▼ 12%
HDFC ▼ 11%
Media stocks on the rise
The Nifty Media index was the top sectoral gainer this week, with a rise of 7.1%. As the vaccination drive progresses and the “unlock” theme unfolds, it is widely expected that the media and entertainment sector will see rising demand. Multiplex majors could benefit from it. Further, the decreasing number of single-screen theatres could help increase the market share of multiplex chains like PVR and Inox, which rose 4-5% this week.
Similarly, the improving macro advertising environment is triggering investor interest in media companies such as Sun TV, Zee Entertainment and TV18 Broadcast, which rose between 5 and 11% this week.
Farm biz drives M&M’s revenues
Auto major M&M reported a 47% year-on-year rise in standalone revenues driven by a 60% growth in its farm equipment vertical, which includes the tractor business.
Its profit before exceptional items and tax grew 52% to ₹1,266 crore, again led by the farm equipment business. However, after profit after exceptional items and tax shrank to ₹48 crore mainly due to impairment provisions of ₹886 crore.
On 11 May, the company had guided for a 15-20% sequential drop in volumes in the expectations of the second wave. However, the stock has risen 9% since then.
The stock was up 2.2% yesterday. and was the top gainer in the auto pack.
IPO market could get a boost
If the market momentum sustains, it could also help to break the lull in the IPO market. Between April and May, there were only two IPOs as compared to nine public issues in March 2021.
There is a buzz around several big-ticket issues like PayTM (~₹21,000 crore), Zomato (~₹8,250 crore) and, finally, LIC which is estimated to be in the range of ₹55,000-70,000 crore, making it the biggest-ever IPO to hit the Indian market.
Major earnings next week
Monday: Aurobindo Pharma
Wednesday: Motherson Sumi, PVR
Friday: Balkrishna Industries, Bharat Forge, Bank of India
Key data releases next week
Monday: Q4 GDP data
Tuesday: Manufacturing PMI
Thursday: Services PMI
Friday: RBI’s interest rate decision