Nifty Opens Steady; L&T Gains, Tata Motors Slips on M&A Buzz
The Indian stock market opened flat on July 30, with traders awaiting cues from the Federal Reserve’s meeting and India-US trade talks. The Nifty50 index traded near 24,860, as investors digested the latest economic indicators and corporate earnings.
Key indices opened with a marginal gain of 0.05% at 24,854.20, with the Sensex rising 25.30 points to 85,344.10. The broader market was also stable, with the Nifty Midcap 100 index rising 0.12% and the Nifty Smallcap 100 index gaining 0.23%.
Among sectoral indices, the Nifty Auto index was the top loser, down 0.45%, as Tata Motors slid 3% on reports of a potential buyout of Iveco, the Italian truck maker. The Nifty PSU Bank index was the top gainer, rising 0.78%, as banks such as SBI and Bank of Baroda gained on the back of strong quarterly earnings.
Larsen & Toubro (L&T) was the top gainer in the Sensex pack, surging 4% after the company reported strong quarterly earnings. The engineering giant’s net profit rose 23% year-on-year to Rs 4,351 crore, beating street estimates.
Analysts expect the market to remain rangebound in the near term, with the Nifty trading between 24,680 and 24,920. “The market is likely to remain volatile in the near term due to FII selling and MSCI rebalancing,” said Deepak Jasani, head of retail research at HDFC Securities.
Foreign institutional investors (FIIs) have been selling Indian stocks aggressively in recent weeks, with their net outflow crossing Rs 10,000 crore in July. The selling pressure is likely to continue in the coming days, analysts said.
On the other hand, domestic institutional investors (DIIs) have been buying stocks, with their net purchase rising to Rs 5,000 crore in July. DIIs have been active buyers in the recent past, particularly in the mid-cap and small-cap segments.
The market is also keeping a close eye on the outcome of the India-US trade talks, which are scheduled to take place in the coming weeks. The talks are expected to focus on issues such as agricultural exports, pharmaceuticals, and data localization.
The Federal Reserve’s meeting is also expected to have a significant impact on the market. The Fed is likely to cut interest rates again, which could boost global equity markets. However, a rate cut is not a certainty, and the market will be closely watching the Fed’s statement for any clues on future rate moves.
In the commodity market, gold prices rose 0.25% to Rs 38,350 per 10 grams, as investors sought safe-haven assets amid global economic uncertainties. Crude oil prices fell 0.15% to $62.15 per barrel, as the US-China trade tensions weighed on global demand.
In the currency market, the rupee lost 0.15% to 70.55 against the US dollar, as the greenback strengthened globally. The dollar index rose 0.3% to 98.45, as investors sought safe-haven assets amid global economic uncertainties.
The market will be closely watching the outcome of the India-US trade talks and the Federal Reserve’s meeting in the coming days. Meanwhile, investors should focus on fundamental analysis and sector rotation to make informed investment decisions.
Source: https://stocktwits.com/news-articles/markets/equity/nifty-sensex-open-steady-july-30/choQYNdR5yC
