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 43.1% of traders are net-long, while the number of traders net-short was 56.90%. FII’s created huge longs 4900 & few shorts 292, while retailers unwinded small longs -1754 & created massive shorts 9296.
Nifty50: 15,690 ▲ +114 (+0.7%) Sensex: 52,232 ▲ +382 (+0.7%)
After a strong opening, the markets remained range-bound for the first half of the day. However, the buying in the last hour allowed the Nifty50 to close at a new record high. Among the sectoral indices, only the Nifty Pharma (-0.2%) index closed in the red. Meanwhile, the Nifty Realty (+3.7%) and Nifty Media (+1.6%) indices were the strongest today.
Top gainers Today’s change
Titan ▲ 6.8%
ONGC ▲ 5.0%
Eicher Motors ▲ 3.3%
Top losers Today’s change
IndusInd Bank ▼ 2.1%
Wipro ▼ 0.7%
Dr Reddy’s ▼ 0.6%
Snowman to deliver Sputnik V with Dr Reddy’s
The cold-chain logistics company has tied up with Dr Reddy’s for the delivery of the Sputnik V vaccine across India. After the announcement, the stock soared 15% intraday and closed 10% higher.
The company will offer storage, order processing, packing and secondary transportation for the vaccines. The logistics company claims to have the capacity to store 650 million doses at present. Its stock has risen about 14% since May.
Ethanol blending target brings sugar rush
The government’s decision to advance its 20% ethanol-blending target from 2025 to 2023 brought about a surge in sugar stocks. Stocks such as Balrampur Chini, Triveni Engineering, Dwarikesh Sugar, jumped 6–8% intraday today. Further, Praj Industries, which makes biofuel technologies, soared 10% intraday.
Under the ethanol-blending programme, fuel distributors will be allowed to sell petrol blended with up to 20% ethanol. The move could offer multiple benefits. First, it could reduce the country’s oil imports (which accounted for nearly 25% of imports in May). Second, it could also boost revenue for the sugar sector, since ethanol, a derivative of sugar, offers better margins to sugar producers.
India’s services sector contracts in May
In May, India’s services sector contracted for the first time in the last eight months. The services PMI, which measures business activity in the services sector, dropped to 46.4 in May as compared to a reading of 54 in April. A reading below 50 indicates contraction.
The street was expecting a reading of 49. But the surging pandemic and fresh restrictions on businesses led to a slump in services activity.
Arvind Fashion reports double-digit sales growth
Arvind Fashion, one of India’s leading casual and denim apparel players, reported a 14% YoY growth in revenue to ₹769 crore. This was led by an increase in footfalls and rebound across online and offline channels. The company’s power brands, which include USPA and Tommy Hilfiger, reported a healthy sales growth of 17% in the March quarter.
It was able to reduce its loss to ₹99 crore as compared to the ₹208 crore loss in the March quarter of the last fiscal with the help of higher sales, lower finance cost and a reduction in other expenses. However, the company has warned that the second wave will have an impact on the first quarter of FY22 and expects normalcy to return by the end of the second quarter.
All-round buying propelled the Nifty50 higher today. The rise comes ahead of the RBI’s monetary policy outcome tomorrow. The RBI is expected to announce its interest rate decision during market hours. The street expects the rates to remain unchanged and the pro-growth stance to continue. Further, investors would also watch out for the central bank’s views on the GDP forecast for FY22 and its outlook on inflation. Meanwhile, major European indices are trading in the red, whereas Asian indices showed a mixed trend today.