Nifty Opens Steady; L&T Gains, Tata Motors Slips on M&A Buzz
The Indian markets opened flat on Tuesday, with traders awaiting cues from the Federal Reserve’s (Fed) meeting and ongoing India-US trade talks. The Nifty50 traded near 24,860, with a range of 24,680-24,920 expected by analysts. The indices were impacted by FII (Foreign Institutional Investor) selling and MSCI (Morgan Stanley Capital International) rebalancing, leading to near-term volatility.
Among the notable stocks, Larsen & Toubro (L&T) surged 4% after reporting strong earnings, while Tata Motors slipped 3% on reports of a potential buyout of its Iveco business.
The Fed’s two-day meeting, which concluded on Wednesday, was closely watched by market participants. The central bank is expected to cut interest rates further to boost the economy, but any surprises could impact the markets. The India-US trade talks, which are ongoing, also have the potential to influence market sentiment.
The Nifty50 opened 10 points higher at 24,864, with a negative bias in the first hour of trading. However, the index soon pared its losses and traded flat, with a range of 24,800-24,900. The Sensex also opened with a 10-point gain at 26,951, but remained rangebound throughout the day.
L&T’s stock price surged 4% to Rs 1,444.50, after the company reported strong quarterly earnings. The company’s net profit rose 21.4% year-on-year to Rs 3,357.70 crore, driven by higher revenue and improved profitability. L&T’s revenue increased 14.2% to Rs 25,423.30 crore, with its construction, infrastructure, and power segments performing well.
On the other hand, Tata Motors’ stock price slipped 3% to Rs 194.50, after reports emerged of a potential buyout of its Iveco business by a Chinese firm. Iveco is an Italian truck and bus manufacturer that has been struggling in recent times. The buyout reports sent shockwaves through the market, with investors worried about the potential impact on Tata Motors’ business.
Other stocks that made headlines on Tuesday included State Bank of India (SBI), which surged 2.5% to Rs 333.50, and Axis Bank, which fell 1.5% to Rs 714.50. ICICI Bank and HDFC Bank also traded lower, with their stock prices falling 1.2% and 1.1%, respectively.
Analysts expect the markets to remain rangebound in the near term, with a range of 24,680-24,920 for the Nifty50. They are also predicting near-term volatility due to FII selling and MSCI rebalancing.
“FII selling and MSCI rebalancing are likely to impact the markets in the near term,” said Rakesh Jain, a market expert at HDFC Securities. “However, we expect the markets to stabilise once these events are over. The Nifty is expected to trade within a range of 24,680-24,920, with a bias towards the upper end of the range.”
Overall, the Indian markets opened steady on Tuesday, with traders awaiting cues from the Fed meeting and India-US trade talks. While L&T surged on strong earnings, Tata Motors slipped on M&A buzz. Analysts expect the markets to remain rangebound in the near term, with FII selling and MSCI rebalancing likely to fuel near-term volatility.
Source: https://stocktwits.com/news-articles/markets/equity/nifty-sensex-open-steady-july-30/choQYNdR5yC
