WEEKLY TRENDSETTER (APRIL 3rd ,2021)
| 2021 | MARCH 26 | APRIL 1 | Ch % |
| NIFTY | 14507 | 14867 | 2.48 |
| BANK NIFTY | 33318 | 33858 | 1.62 |
| USD/INR | 72.61 | 73.44 | 1.14 |
The truncated week had its share of volatility. While, the broader market remained positive, the Bank Nifty was the weak link. However, both indices showed a good comeback and going into result season, there was a sense of optimism.
NEWS FLOW
1.Tata Motors showed a stellar growth in passenger car sales in March 21 at 29654 units. With this the company has posted a 69% growth in FY 20-21. The growth was largely aided by likes of Altroz, Nexon, Tiago and the New Safari and Harrier. This is the highest sales growth in 9 years for the month as well as the quarter.
2.GST collections surge to all time high in March,21 to 1.24 lac cr. This has been due to the Govt ‘s drive against fake invoices and tightening of rules with respect to reporting.
3.Retail investors have clearly converted a crisis into a great opportunity going by the pull out from DIIs in the last one year. The number of ‘demat’ accounts, which contain retail investor holdings in securities in electronic format, increased 27% last year to stand at 49.8 mn at the end of 2020. The rise in demat accounts comes as millennials, faced with job losses and pay cuts due to the COVID-19 pandemic, dabbled in stock markets directly to try to make some extra income while staying at home.
POINT OF VIEW
1.SAFETY NET BEST FOR RETAIL INVESTORS?
The last one year saw a slew of IPO s which by and large proved profitable to the retail investors. However, the rush of IPO s last month with some high-profile names proved to be dampeners as post listing, issue prices came to haunt the investors. It again brings back into debate of whether safety net mechanism is the best way out for such debacles to be addressed. Years back Just Dial offered to buy back shares when the prices dipped in secondary market. Some statutory teeth to this mechanism would ensure IPO s are fairly priced.
2.NAZARA’S LISTING AND THE OTHER EXCITING OPTIONS IN THIS INDUSTRY
Gaming industry is a high potential area which has caught investor s fancy worldover .Ofcourse with high expectations ,valuations have been stretched reminiscent of the dotcom boom of early 2000. Nazara also belongs to this space and has already established itself and generating profits and even looking out for acquisitions .Another space where the growth is likely to be high is eSports where the format is gaining traction among gamers as the experience is similar to watching a professional sporting event like IPL .Nazara also holds around 80% stake in the domestic eSports market through its subsidiary Nodwin Gaming .Media is abuzz with such gaming ads and with growing online gaming experience ,this space is likely to gather momentum in the coming years .Thus Nazara could emerge as a trendsetter for this space .Clearly a scrip not to be ignored though valuations are high !
MARKET OUTLOOK
1.The market made a decent comeback last week. While pharma, IT, metals, chemicals, etc continue to be in fancy, banking counters have faced the brunt of selling pressure. With bond yields hardening, treasury income could come under pressure. However, credit growth, recoveries as well as QIP s done by some like BOB, CanBank, IDFC Bank, etc should buoy sentiments.
2.Technically, the market could again advance to levels of 15100-200. The Nifty high of 15431 touched in Feb 21’ is the critical resistance. Results from IT and pharma will be the key to upsides and the next few weeks will be exciting. The broader market however continues to be strong.
Starting next week highlight will be on some counters which have been featured in this weekly, post results and examine cues for the possible moves!
Till then enjoy the markets! Health is paramount with surging Covid cases and thus wear a mask to be protected as well protect our near and dear ones!
Krish Subramanyam