Nifty Opens Steady; L&T Gains, Tata Motors Slips on M&A Buzz
The Indian markets opened flat on Monday, with investors awaiting cues from the Federal Reserve’s meeting and India-US trade talks. The Nifty50 index traded near 24,860, while the Sensex was flat, hovering around 27,500. The benchmark indices were poised to trade in a narrow range, with analysts expecting a rangebound move between 24,680 and 24,920.
The market sentiment was subdued, with traders adopting a cautious approach ahead of the Fed’s interest rate decision, which is expected to influence global markets. Meanwhile, the ongoing India-US trade talks have also kept investors on edge, as any developments could impact the market’s direction.
Tata Motors was one of the major losers of the day, sliding 3% after reports emerged that the company was in talks to acquire Iveco, the commercial vehicle unit of CNH Industrial. The acquisition would be a significant move for Tata Motors, which has been looking to expand its presence in the global commercial vehicle market.
On the other hand, L&T surged 4% after the company reported strong earnings for the quarter ended June 30. The engineering conglomerate’s net profit rose 24% year-on-year to Rs 3,230 crore, driven by strong demand for its construction equipment and heavy machinery. The company’s revenue also rose 14% to Rs 45,340 crore.
L&T’s earnings beat expectations, with analysts attributing the strong performance to the company’s diversified business portfolio and robust demand from the infrastructure and construction sectors. The stock’s rally was also driven by the company’s plans to expand its presence in the renewable energy space, with a focus on solar and wind power projects.
Other sectors that gained traction included banking and finance, with Axis Bank and HDFC Bank rising 1-2% each. The banking sector has been a key beneficiary of the recent rate cuts by the Reserve Bank of India, with lenders’ margins expected to improve in the coming quarters.
However, the broader market remained rangebound, with the Nifty50 index trading in a narrow range of 24,800-24,900. The Sensex was also flat, hovering around 27,500.
Analysts expect the market to remain volatile in the near term, driven by foreign institutional investors’ (FII) selling and the ongoing MSCI rebalancing exercise. The MSCI index is set to rebalance its portfolio on August 14, which could lead to changes in the market capitalization-weighted indices.
FIIs have been net sellers of Indian equities for several weeks, with their selling pressure expected to continue in the coming days. However, policymakers have been working to address the market’s concerns, with the government and the Reserve Bank of India taking steps to boost economic growth and stabilize the financial markets.
In conclusion, the Indian markets opened flat on Monday, with investors awaiting cues from the Fed’s meeting and India-US trade talks. While Tata Motors slid 3% on Iveco buyout reports, L&T surged 4% after strong earnings. Analysts expect the market to remain rangebound in the near term, driven by FII selling and MSCI rebalancing. As the market continues to navigate the uncertainty surrounding the Fed’s interest rate decision and India-US trade talks, investors would do well to stay cautious and monitor developments closely.
News Source: https://stocktwits.com/news-articles/markets/equity/nifty-sensex-open-steady-july-30/choQYNdR5yC
