Nifty Opens Steady; L&T Gains, Tata Motors Slips on M&A Buzz
Indian markets opened flat on Wednesday, with traders awaiting cues from the Federal Reserve’s interest rate decision and India-US trade talks. The Nifty index traded near 24,860, with a range of 24,680-24,920 expected for the day.
The morning session saw a mixed bag of performances from frontline stocks, with L&T emerging as a top gainer after the company reported strong quarterly earnings. The stock surged 4% to Rs 1,445, driven by robust growth in its infrastructure and construction segments.
On the other hand, Tata Motors slipped 3% to Rs 143 after reports emerged that the company is in talks to acquire Iveco, the Italian commercial vehicle maker. The deal, if successful, could help Tata Motors expand its presence in the global commercial vehicle market.
The broader market was also mixed, with the BSE Midcap index rising 0.3% and the BSE Smallcap index falling 0.2%. Sector-wise, the IT index was the top performer, up 0.9%, while the FMCG index was the laggard, down 0.4%.
Analysts are expecting rangebound moves in the market, with the Nifty likely to trade between 24,680-24,920. “The market is likely to remain rangebound until we get clear cues from the Fed meeting and India-US trade talks,” said Suman Chowdhury, chief analytical officer at Acuite Ratings & Research.
The Fed meeting, which is scheduled for later in the day, is expected to provide guidance on interest rates and monetary policy. The market is likely to react positively to a dovish tone, which could lead to a decline in yields and a rally in equities.
The India-US trade talks, which are expected to begin soon, are also likely to have an impact on the market. The talks are expected to focus on issues such as tariffs, agricultural products, and intellectual property rights.
In addition to these global cues, domestic factors such as FII selling and MSCI rebalancing are also expected to fuel near-term volatility in the market. Foreign institutional investors (FIIs) have been selling Indian stocks in recent weeks, which has led to a decline in the market.
MSCI rebalancing, which is scheduled for next week, is also expected to have an impact on the market. The rebalancing exercise could lead to a change in the weightage of certain stocks in the MSCI India index, which could lead to a rally or decline in their prices.
Despite the near-term volatility, analysts are bullish on the Indian market, citing factors such as robust economic growth, a strong corporate earnings season, and a favorable valuations backdrop.
“We expect the market to continue its upward journey in the coming months, driven by strong earnings growth and improving macroeconomic indicators,” said Nitin Vyas, head of research at Reliance Securities.
In conclusion, the Indian market opened steady on Wednesday, with L&T and other frontline stocks leading the gains. The market is likely to remain rangebound until we get clear cues from the Fed meeting and India-US trade talks. Analysts are bullish on the market, citing factors such as robust economic growth, strong corporate earnings, and favorable valuations.
Source: https://stocktwits.com/news-articles/markets/equity/nifty-sensex-open-steady-july-30/choQYNdR5yC
