Zubu Client Sentiment Nifty50 Report & Market Recap (Sep-27-2022)

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 64.51% of traders are net-long, while the number of traders net-short was 35.49%. FII’s created huge shorts  again 11097  & only 91 longs, while retailers unwinded few longs -1465 & huge shorts -9682.

The Indian markets witnessed a sharp fall on Monday. The Nifty 50 breached the 17,000 mark for the first time since 29 July. Of late, Indian markets have witnessed increased volatility. What’s impacting markets? Here’s a low-down.

Foreign investors were net sellers in the past three trading sessions. They had invested over ₹51,000 crore in August 2022. However, the pace of investment has slowed down this month. Market experts believe the US dollar being at a record high and better returns on the 10-year US bonds is making Indian markets less lucrative for foreign investors.

Besides this, weakness in the global markets too had a domino effect on Indian markets today. The US Fed’s 0.75% interest rate hike last week caused a fall in major US indices, including the Dow Jones which hit a new 52-week low. Further, Asian markets, too, closed lower on Monday, which consequently impacted Indian markets.

After the US Fed rate hike, all eyes are on the RBI monetary policy meeting which is scheduled this week. Market experts believe the RBI may also take an aggressive stance to curb inflation, which has remained above the central bank’s upper tolerance level of 6% for eight months in a row and stood at 7% in August.

All in all, the Indian markets are currently being dominated by bears. Having said that, they have shown immense resilience and outperformed global peers. The Nifty50 is down by 1.9% year-to-date, whereas major US and European indices are down in the range of 18-22% so far this year.

Nifty50: 17,016 ▼ 311 (-1.8%) Sensex: 57,145 ▼ 953 (-1.6%)

Indian markets fell for the fourth consecutive trading session, following weak global cues.
In all, 41 of the Nifty50 stocks closed in the red.
The rupee declined by 59 paise to hit a new all-time low of 81.71 against the dollar.
Among the Nifty sectoral indices, IT (+0.5%) was the sole gainer, while Realty (-4.2%) and Metal (-4.1%) were the top losers.

Top gainers Today’s change
HCL Tech 908 ▲ 12 (+1.3%)
Infosys 1,383 ▲ 17 (+1.2%)
Asian Paints 3,434 ▲ 38 (+1.1%)

Top losers Today’s change
Adani Ports 855 ▼ 58 (-6.3%)
Tata Motors 398 ▼ 25 (-5.9%)
Hindalco 373 ▼ 23 (-5.8%)

⭐ S&P maintains India’s growth forecast

Rating agency S&P Global has retained India’s economic growth forecast at 7.3% for the current financial year. Meanwhile, for FY24, the growth forecast is estimated at 6.5% with downside risks. Other agencies such as Fitch Ratings and Asian Development Bank (ADB) had recently cut India’s GDP growth forecast amid high inflation and rising interest rates. The Indian economy expanded at 13.5% in the first quarter of FY23.

MOTHERSON (NSE): 112 ▼ 5.4 (-4.5%)
Automotive parts manufacturer Samvardhana Motherson has entered into an agreement with Japan-based Ichikoh Industries to acquire the latter’s mirror business. The agreement is worth 5.2 billion Japanese yen and is expected to be closed in 6-8 months. The target business reported revenues of 15.8 billion Japanese yen in 2021. With this deal, Motherson will add three manufacturing facilities across Japan and China and 260 patents to its IP portfolio.

⭐ PVR to invest ₹350 crore in FY23

PVR (NSE): 1,673 ▼ 64 (-3.7%)
Multiplex operator PVR plans to invest upto ₹350 crore to open 100 new screens in FY23. The investment will be funded through a combination of internal accruals and debt. The announcement came during the launch of a six-screen multiplex at Pune. With this launch, PVR now operates 864 screens in 76 cities across India and Sri Lanka. Also, the management expects the mega merger with Inox Leisure to close by February 2023.

⭐ Anupam Rasayan asked to shut down plant

ANURAS (NSE): 772 ▲ 0.3 (+0.04%)
Speciality chemicals maker Anupam Rasayan has been directed by Gujarat Pollution Control Board (GPCB) to shut down a plant and pay ₹1 crore as compensation for environmental damage. This comes after a major fire at one of the company’s manufacturing units in Surat affected the air quality of the nearby area. The company said it is taking all measures to restart the plant at the earliest.