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 44.61% of traders are net-long, while the number of traders net-short was 55.39%. FII’s unwinded huge longs -4596 & created huge shorts 3769, while retailers created massive longs 14632 & unwinded decent shorts -1937.
Nifty50: 15,737 ▲+102 (+0.6%) Sensex: 52,300 ▲ +358 (+0.6%)
The markets opened with a gap up and continued to inch higher, supported by broad-based buying. The market breadth was positive, with 34 of the Nifty50 stocks closing in the green. All sectoral indices, except Nifty Auto (-0.1%), closed higher today. Nifty Media (+4.6%) and Nifty Realty (+3.3%) were top gainers for the day.
Top gainers Today’s change
Bajaj Finance ▲ 7.6%
Bajaj Finserv ▲ 3.8%
SBI ▲ 2.6%
Top losers Today’s change
Bajaj Auto ▼ 0.9%
Eicher Motors ▼ 0.7%
UPL ▼ 0.6%
Auto sales slide in May
As per the Federation of Auto Dealers’ Associations (FADA) retail auto sales were down nearly 55% in May as compared to April. All auto segments, including passenger vehicles and two-wheelers, fell by over 50%. The drop in sales is due to most regions being under lockdown in May.
However, the industry body also mentioned that in the first nine days of June, auto sales have been better than expected due to pent-up demand. Further, expectations of normal monsoon could lift rural demand. Meanwhile, the Nifty Auto index fell 0.1% today but is up about 9% so far this fiscal.
Lockdowns hurt FMCG sales
Sales of fast-moving consumer goods (FMCG) declined by 32% month-on-month in May due to regional lockdowns, as per a survey conducted by a retail intelligence platform. This comes on the back of a 16% month-on-month drop in FMCG sales in April.
Among the key categories, personal care and beverages saw a drop of 52% and 33% in May, respectively. Despite the subdued performance, the Nifty FMCG index rose by over 6% since May.
MMTC to restructure debt
The board of state-owned MMTC has approved itsdebt restructuring scheme, under which proceeds from the divestment of Neelachal Ispat Nigam Limited (NINL) will be used for settlement of dues.
Under this scheme, various banks have deferred the principal and interest payments up to March 2022. The final settlement shall be made from the divestment proceeds of NINL. The company said that State Bank of India is the lead banker. Shares of MMTC rose 2.3% today and have gained over 40% so far in FY21.
ION Exchange bags large orders
Shares of Ion Exchange rallied by 7% on today after it bagged two orders for water treatment plants worth ₹1,000 crore. The stock has been on an upward trajectory over the last two days, rising up by 28%.
This comes after the company reported strong results on Tuesday. The company’s consolidated net profits more than doubled on a year-on-year basis to ₹70.5 crore driven by a 26% surge in operating income.
In contrast to the weakness seen in the markets yesterday, today the bulls were in charge. However, the movement in the indices was confined within yesterday’s trading range. Thus, it doesn’t provide any particular directional cue. A clear trend will emerge when either yesterday’s high or low are breached. Tomorrow, the Index of Industrial production (IIP) numbers for April will be announced. This time around, the numbers – which are shown on YoY basis – won’t provide much information as in April last year the country was under total lockdown. At present, the markets are more concerned about the US retail inflation (to be released today) because that will give clues on how the Fed will act on the interest rates.