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 48.58% of traders are net-long, while the number of traders net-short was 51.42%. FII’s created huge longs 6848 & unwinded huge shorts -1912, while retailers created few longs 599 & huge shorts 5192.
Nifty50: 15,686 ▼ -85 (-0.5%) Sensex: 52,306 ▼ -282 (-0.5%)
After a gap-up opening, the markets faced selling pressure. Out of the Nifty50, 34 stocks ended in the red. The Nifty Auto (+0.4%) was the only sectoral index that rose, while the Nifty Metal (-1.1%) and Nifty IT (-0.9%) were the top losers.
Top gainers Today’s change
Maruti Suzuki ▲ 2.2%
Titan ▲ 1.4%
Bajaj Finserv ▲ 1.2%
Top losers Today’s change
Adani Ports ▼ 3.2%
Wipro ▼ 2.8%
Divis Lab ▼ 1.4%
IDBI Bank rises on privatization buzz
Shares of IDBI Bank rose 6% intraday as the government invited bids from transaction advisors and legal firms to assist in the bank’s strategic sale.
The government and LIC—which hold 45.5% and 49.2% stake in the bank, respectively—are expected to sell their majority stake and give up management control. Last month, the bank reported an annual profit for the first time in five years at ₹1,359 crore for FY21. However, the stock pared some early gains and closed 2% higher for the day.
BEL posts strong Q4
State-owned aerospace and defense electronics maker BEL reported a 31% year-on-year growth in its profit for the March quarter. During the same period, its sales rose by 18% to ₹6,757 crore.
At the start of this fiscal, the company’s order book stood at ₹53,434 crore, which is nearly four times its FY21 sales. Shares of the company rose 10.6% coupled with strong volumes, indicating strong buying interest. It has risen 34% so far this fiscal. Interestingly, foreign portfolio investors have increased stake in the company from 7.8% in June 2020 to 11.6% in March 2021.
Sobha’s Q4 net profit shrinks
Bengaluru-based real estate developer Sobha reported a 65% year-on-year decline in its consolidated net profit for the March quarter at₹18 crore. The drop in profit was mainly due to a 39% decrease in revenue from operations to ₹553 crore.
During the quarter, the company incurred land purchase cost of ₹131 crore, which was more than triple of that during the corresponding quarter last year. This led to an increase in the overall expenses. The stock was down 4.1% today and has been moving sideways since the beginning of this fiscal.
Cipla gets USFDA nod for generic drug
Pharma major Cipla received approval from the US Food & Drug Administration for its Arformoterol Tartrate Inhalation Solution. This generic drug is used for the treatment of lung diseases such as chronic bronchitis.
The approved drug is a generic version of Sunovion Pharmaceuticals’ Brovana, which had reported sales of $438 million in the US for the 12-month period ending April 2021. Shares of Cipla were up 0.3% today.
The markets continue to be torn between the bulls and bears, and thus lack a clear direction. However, the momentum gained in May seems to have been lost. Further, nearly all sectoral indices closed in the red today, indicating a broad-based selling pressure. It is time for traders to be nimble-footed as volatility could rise. The India VIX rose 4% today, after being subdued for the last two months.