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 43.42% of traders are net-long, while the number of traders net-short was 56.58%. FII’s unwinded small longs -1218 & created huge shorts 4680, while retailers created huge longs 2485 & created small shorts 1297.
Nifty50: 15,670 ▼ -20 (-0.1%) Sensex: 52,100 ▼ -132 (-0.2%)
Despite opening in the green, the markets showed weakness from the beginning and stayed negative for much of the day. Interestingly, the market breadth was evenly split, with 25 of the Nifty50 stocks closing positively. Stocks in the Nifty Metal (+1.3%) and Nifty Media (+1.0%) saw strong buying interest, while the Nifty Bank (-1.0%) and Nifty FMCG (-0.3%) were the weakest sectoral indices today.
Top gainers Today’s change
Tata Motors ▲ 3.4%
Grasim ▲ 3.3%
Coal India ▲ 2.7%
Top losers Today’s change
Nestle India ▼ 2.0%
SBI ▼ 1.2%
Hindalco ▼ 1.1%
Defence-related stocks jump on major Navy tender
The Indian Navy is reportedly set to announce tenders worth ₹50,000 crore to build six stealth submarines. The contracts will be given to Indian companies that are strategic partners to the Ministry of Defence, which include Mazagon Dock (+5.5%) and Larsen & Toubro (+1.6%).
The vessels will be built in collaboration with global companies, with the objective of enhancing indigenous submarine design and construction capabilities.
Hospitality stocks soar on RBI’s liquidity support
As part of its latest monetary policy, the Reserve Bank (RBI) has reserved ₹15,000 crore for lending to the hospitality sector. These loans are expected to reduce the impact of the pandemic on hotels, restaurants and the tourism sector.
Following the announcement, hospitality sector stocks such as EIH Hotels (+20%), Coffee Day (+6.4%), Lemon Tree (+3.6%), and Barbeque Nation (+3.4%) saw strong buying during the day.
Bharat Forge back in black
The Pune-based auto-ancillary company reported a profit of ₹212 crore in Q4, versus a loss of ₹68.5 crore during the same period last year. The improvement in performance was driven by a nearly 20% jump in consolidated revenue, better raw material cost management and lower finance costs.
The company is witnessing a sharp recovery in customer demand with exports gaining strong traction. Its key addressable market of heavy trucks in the US and Europe has seen a sharp increase in demand and has a robust outlook. The stock jumped over 7% intraday and hit its 52-week high of ₹749. It has risen 42% so far this year.
Bank of India reports profitable quarter
Higher other income and lower bad loan provisioning helped the state-owned lender to report a profit of ₹250 crore versus a loss of ₹3,571 crore in the March quarter.
Its net interest income declined by 23%. However, asset quality improved as gross NPAs fell from 14.7% to 13.7%. The lender’s stock gained 2.6% today in an otherwise weak market.
The RBI has reiterated that it will maintain its accommodative stance as long as necessary. However, the markets were already expecting this and did not give any major reaction. The central bank has lowered its FY22 GDP forecast from 10.5% to 9.5%, to account for the impact of the second wave.
The market movement this week was largely dominated by domestic data releases. Next week, markets could pay greater heed to the changes in the international indices.