Zubu Client Sentiment Nifty50 Report & Market Recap (July-28-2021)
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 48.85% of traders are net-long, while the number of traders net-short was 51.15%. FII’s unwinded decent longs -2251 & created shorts 2174, while retailers created massive longs 13039 & unwinded decent shorts -2175.
Nifty50: 15,709 ▼ -37 (-0.2%) Sensex: 52,443 ▼ -135 (-0.2%)
It was a see-saw session where the first of the session was dominated by the bears and the second half by the bulls. Nonetheless, the markets closed on a negative note, As 27 of the Nifty50 stocks closed in the red. Among the Nifty sectoral indices, only Metal (+1.2%) and IT (+0.2%) ended positively, whereas PSU Bank (-1.8%) and Auto (-0.9%) lost the most.
Top gainers Today’s change
Bharti Airtel ▲ 5.0%
Tata Steel ▲ 2.8%
SBI Life ▲ 2.1%
Top losers Today’s change
Kotak Bank ▼ 2.5%
Dr Reddy’s ▼ 2.5%
Tata Motors ▼ 2.2%
Coforge posts strong profit in Q1
IT services company Coforge reported a 55% YoY jump in its consolidated net profit to ₹124 crore for the June quarter. The profit growth was supported by a 38% rise in the revenue from operations to₹1,462 crore. The Q1 figures also include the contribution from SLK Global, which the company acquired in April 2021.
The total executable order book over the next 12 months grew 39% YoY to $645 million. Further, the company said that it has secured 3 large deals, including a $105 million engagement. It is planning for an organic growth of at least 19% in constant currency terms during FY22, which is higher than the 17% growth indicated earlier. The stock was up 0.5% today and has gained 62%% so far this fiscal.
Maruti’s profit tumbles in Q1
In the June quarter, India’s leading car manufacturer’s net profit dropped by 62% sequentially to ₹440 crore due to lower sales. The street expected a net profit of ₹878 crore. The company’s net sales declined by 26% QoQ to ₹16,798 crore as the second wave dented demand.
The company said that the commodity prices increased steeply but it continues to take steps to reduce costs. In positive developments, the car marker spent less on promotions and increased the selling price of its vehicles in Q1FY22. Shares of Maruri Suzuki were down 1.3% today.
BLS International posts profitable Q1
In the June quarter, the global visa outsourcing service provider reported a consolidated net profit of ₹20 crore compared to a loss of 80 lakh in Q1FY21. In the same period, the company’s revenue rose by 242% to ₹178 crore.
The management has said that as borders reopen globally it expects visa business to start contributing again in the coming quarters, which is expected to significantly improve its financial performance in FY22. Shares of the company were up 11% today after the results were announced yesterday post the market hours.
Closing bell
The market showed completely opposite trends today. It started on an extremely weak note and dived down. However, as it reached closer to the lower end of the current consolidation range (15450-15950), buying interest emerged. Favourable opening of the European indices also provided positive cues. Meanwhile, unlike the decent results posted by the Indian IT companies earlier this month, the recently announced results by other large companies have been below street estimates. This is acting as a sentiment spoiler especially at the time when markets are trading close to their lifetime highs. The US Fed is expected to announce its interest decision tonight. While the street expects rates to remain unchanged, Fed’s commentary could have a bearing on how markets open tomorrow.