Nifty Opens Steady; L&T Gains, Tata Motors Slips on M&A Buzz
The Indian markets opened flat on July 30, with traders awaiting cues from the Fed meeting and India-US trade talks. The Nifty traded near 24,860, with a range-bound movement expected between 24,680 and 24,920. Analysts anticipate near-term volatility due to FII selling and MSCI rebalancing.
Larsen & Toubro (L&T) was the top gainer, surging 4% after the company reported strong earnings. The engineering conglomerate’s net profit rose 23.4% year-on-year to Rs 4,482 crore, driven by strong performance from its construction and infrastructure segments.
On the other hand, Tata Motors slid 3% after reports emerged of the company’s plans to buy out Iveco’s stake in the Indian commercial vehicles joint venture. The acquisition is seen as a strategic move to strengthen Tata Motors’ presence in the domestic market.
The Sensex and Nifty opened steady, with the former rising 0.1% to 27,410 and the latter gaining 0.2% to 24,860. The markets are expected to remain range-bound, with analysts cautioning against making any major bets.
“We expect the markets to trade in a narrow range, with the Nifty likely to oscillate between 24,680 and 24,920,” said Rajesh Cherian, head of research at Anand Rathi Securities.
The Fed’s monetary policy decision is expected to have a significant impact on the markets. The US central bank is widely expected to cut interest rates, which could lead to a strengthening of the US dollar and a decline in emerging market currencies, including the rupee.
The India-US trade talks also remain a key concern for the markets. The two countries are expected to sign a trade deal soon, but the terms of the agreement remain unclear. Any adverse outcome could have a negative impact on the markets.
In the near term, analysts expect FII selling to continue, which could lead to volatility in the markets. The FII selling has been a major factor in the recent decline in the markets, and any further selling could lead to a decline in the Nifty.
“FIIs have been selling heavily in the recent past, and this trend is likely to continue in the near term,” said Jimeet Modi, founder of SAMCO Securities.
MSCI rebalancing is another factor that could lead to volatility in the markets. The index is set to rebalance its portfolio on August 2, which could lead to a change in the composition of the Nifty.
“The MSCI rebalancing could lead to a change in the portfolio composition of the Nifty, which could lead to volatility in the markets,” said Cherian.
In conclusion, the Indian markets opened flat on July 30, with traders awaiting cues from the Fed meeting and India-US trade talks. L&T was the top gainer, while Tata Motors slid on M&A buzz. Analysts expect range-bound moves between 24,680 and 24,920, with FII selling and MSCI rebalancing likely to fuel near-term volatility.
News Source: https://stocktwits.com/news-articles/markets/equity/nifty-sensex-open-steady-july-30/choQYNdR5yC
