Zubu Client Sentiment Nifty50 Report & Market Recap (Apr-9-2021)

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.

Zubu Client Sentiment Nifty50 Report Apr-9-2021)

Nifty50 retail trader data shows 53.8% of traders are net-long, while the number of retail traders net-short was 46.2%. FII’s created decent longs 1459 & created huge shorts 4636, while retailers unwinded decent longs and huge shorts -1234 & -8638 respectively. After two days of unwinding of shorts FII’s again created huge shorts again.

Nifty50: 14,834 ▼ -38 (-0.2%) Sensex: 49,591 ▼ -154 (-0.3%)

The markets opened weak and remained in negative territory for most of the day. Of the Nifty50 stocks, 26 closed in the red. Among the sectoral indices, Nifty Pharma (+3.0%) and Nifty PSU Bank (+2.0%) were the top gainers, while Nifty Bank (-1.0%) and Nifty Financial Services (-0.7%) were among the top losers.

Top gainers Today’s change
Cipla ▲ 5.3%
Sun Pharma ▲ 3.5%
HUL ▲ 2.5%

Top losers Today’s change
Bajaj Finance ▼ 3.0%
UPL ▼ 2.4%
Tata Steel ▼ 2.1%

Westlife enables 24×7 delivery at McDonalds

The operator of the burger chain in southern and western India will keep select stores in Mumbai running for 24×7 food delivery. The announcement comes after the state allowed restaurants to run deliveries 24×7 after it went into partial lockdown.
Although dine-in business has taken a hit, organised restaurant chains have benefited from a strong delivery network, both in-house and that provided by food-delivery apps. Shares of Westlife Development gained about 1.1% today, while Jubilant FoodWorks and Burger King remained flat.

PLI for solar in the works

To reduce import dependency, the government has recently approved a ₹4,500 crore production-linked incentive (PLI) scheme for solar module manufacturing. The incentives for the scheme are likely to range from 2.25% to 3.75% of incremental sales of manufactured goods.
Bids for the scheme are likely to begin in the next two weeks, while beneficiaries will be identified in July. Some companies that are a part of the solar value chain include Tata Power (which makes solar cells via its subsidiary) and Borosil Renewables (the only solar glassmaker in India). Further, in order to support local manufacturing, the government will levy a basic customs duty of 40% and 25% on imported solar modules and cells from FY23.

L&T bags large solar PV project in Saudi Arabia

The renewable energy arm of L&T has secured a ‘major’ contract for the 1.5GW Sudair Solar PV project in Saudi Arabia. Although the infra major did not disclose the exact value of the project, the term ‘major’ indicates the project value is in the range of ₹5,000–7000 crore. The project is considered the largest solar plant in the country and is also one of the largest in the world.
The project, which is being set up in Riyadh Province, has a 30.8 sq km land parcel available to install a total capacity of 1.5GW PV solar modules. Shares of L&T were down about 1% in a weak market.

Srei Infra receives EoI for capital infusion

Srei Infrastructure Finance has received an expression of interest for a capital infusion of $250 million (~₹1,860 crore). The investors include US-based Arena Investors LP and Singapore’s Makara Capital Partners. Following the development, the stock was locked in its 20% upper circuit.
In the wake of the pandemic, the Kolkata-based NBFC has been under stress due to mounting provisioning. In Q3, it reported a loss of ₹3,810 crore. However, the stock has been on an uptrend of late and has over 38% in April so far.

Closing bell

Even though the markets were dragged by banks and the global cues were a mixed bag, the markets continued to find support from various areas. Yesterday, metal stocks helped lift the markets, and today it was pharma and IT. It seems that while the domestic situation is becoming increasingly challenging (mainly due to rising Covid cases), investors are seeking refuge in sectors that have higher export revenues.

Next week, inflation data will be announced on Monday evening. The street expects it to be 5.40% for March (versus 5.03% in February). If so, it will be a sharp jump from around 4% in January.