Zubu Client Sentiment Nifty50 Report & Market Recap (July-12-2021)

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

Nifty50 retail trader data shows 50.88% of traders are net-long, while the number of traders net-short was 49.12%. FII’s created huge longs 3092 & created unwinded massive shorts -5963, while retailers unwinded massive longs -10549 & created huge shorts 3778.

Nifty50: 15,692 ▲+2 (+0.0%) Sensex: 52,372 ▼-13 (-0.0%)

After a gap-up opening markets were steady in the first half of the session. However, they saw some selling pressure in the second half and closed flat for the day. In all, 27 of the Nifty50 stocks closed in green. Among the Nifty sectoral indices, Realty (+3.6%) and Bank (+0.3%) were top gainers, whereas IT (-0.4%) and Metal (-0.2%) saw some weakness.

India’s NIFTY Realty Index touches a 52-week high on optimism reviving economy to boost demand. India’s 10-share NIFTY Realty Index touched a 52-week high today, but gave up some gains towards the end, on optimism the resumption of economic activity will push demand for land and homes in coming months and years. The National Stock Exchange’s Nifty Realty Index touched a
1-year high of 382.25 points before ending 3.6% higher at 379.35 points.

All the 10 stocks which comprise the NIFTY Realty Index ended higher today. Home sales have been on a declining path since March 2020 when the COVID-19 pandemic brought a complete shutdown across the world as authorities restricted mobility to curb the spread of the virus. Global economic growth slowed and “The realty index has had a history of prolonged underperformance but the scenario is changing now. It has reached a decade high and is likely to carry this momentum ahead. However, we feel participants should maintain a selective approach and prefer quality names like Oberoi Realty, Godrej Properties and Phoenix ltd,” said Ajit Mishra, Vice Preident- Research at Religare Broking in Mumbai.

India’s economy expanded 1.6% per cent in the Jan-Mar quarter, the last quarter of its accounting year. In the full fiscal year ended March 31, the economy shrunk by -7.3% as Covid-19 pandemic ravaged the economy. The contraction was the worst in more than 40 years. Home and real estate sales have staggered despite the slew of measures announced by the central bank as well as the state and provincial governments to boost demand. Since the start of the pandemic, the central bank has announced measures such as reducing interest rates and flexible accounting norms for lenders. The government on its part has offered sops to home buyers and lower taxes on real estate transactions.

Real estate transaction aggregator Anarock Properties said this week that in the quarter ended June the unsold housing inventory overhang fell to 43 months from the peak of 55 months in 2020. Mumbai is the financial capital of India and the second-biggest city with a population of over 20 million.

The reduction in costs of purchasing a house bottomed out in Mumbai, according to some analysts. Prices of real estate in Mumbai had surged by 7-10 times over the past 20 years, Anarock said in its analysis. The average number of monthly incomes required to own a home in this city is the highest among major Indian cities at between 67-90 times of an average monthly income, the analysis said.

Top gainers Today’s change
UltraTech Cement ▲ 2.4%
Grasim Industries ▲ 2.3%
Shree Cement ▲ 1.8%

Top losers Today’s change
Adani Ports ▼ 1.4%
BPCL ▼ 1.3%
Bharti Airtel ▼ 1.2%

Crude oil falls on rising cases

Crude oil prices fell due to concerns over the impact of rising cases on economic growth. The spread of the Delta variant is leading to a rise in cases globally, including in the UK and US.
Further, the OPEC+ alliance had earlier failed to reach an agreement on increasing production levels. Analysts believe that crude oil prices could remain volatile till there is clarity from OPEC and its allies. After hitting nearly $77 per barrel last week, US crude oil is currently trading below $75.

Maruti Suzuki raises prices

India’s largest car manufacturer today announced that it will increase the prices of its popular brand Swift and all CNG variants with immediate effect. The company said that it will be hiking prices by ₹15,000 due to an increase in input costs.
The prices of its other models will also be hiked soon, the company added in its exchange filing. Rising input cost is an industry-wide phenomenon and as seen in the past, other players could follow suit. Shares of Maruti Suzuki were up 0.5% and the Nfty Auto index was up 0.1% today.

SFB holding companies’ shares surge

Shares of Equitas holdings and Ujjivan Financial Services were locked in the 20% upper circuit today. This comes after the Reserve Bank of India allowed small finance banks to merge with their holding companies on completion of five years from the date of commencement of business.
With the merger, the so-called holding company discount will disappear. After the merger, investors of the holding companies will get shares of SFBs in a swap deal as these holding companies will cease to exist.

Godrej Prop to invest over $1 bn in couple of years

The Mumbai-based real estate developer will invest over$1 billion (about ₹7,500 crore) in the next couple of years. It will acquire and develop new projects to achieve its target of higher growth.
The company was the largest developer by value and volume of sales in FY21. It recorded sales bookings of ₹6,725 crore in the last fiscal, surpassing nearly ₹6,000 crore achieved by Macrotech Developers (earlier known as Lodha Developers). The company said business was impacted in FY21 due to the pandemic but expects FY22 to be a year of strong growth. Shares of Godrej Properties were up 2.5% today.

Closing bell

Looking at the intraday selling today, it seemed as if the markets got cold feet ahead of the inflation and IIP data release today. Meanwhile, the international indices gave mixed cues, as Asian indices were up and the European markets were down. While the FII flows have been shaky so far this month, the positive flows from domestic institutions are playing the balancing act. Traders would now pin hopes on the data releases this week and the ongoing result season to trigger a break on either side in the benchmark Nifty50, which is locked in a range.