Nifty Opens Steady; L&T Gains, Tata Motors Slips on M&A Buzz
The Indian equity markets opened flat on July 30, with traders awaiting cues from the Federal Reserve’s meeting and India-US trade talks. The Nifty 50 index traded near 24,860, with stocks experiencing mixed reactions to recent developments.
One of the key stocks in focus was Tata Motors, which slid 3% after reports emerged of the company’s plans to buy Iveco, the commercial vehicle arm of CNH Industrial. The acquisition is seen as a strategic move to strengthen Tata Motors’ position in the global commercial vehicle market. However, the stock’s decline was tempered by the fact that the acquisition is still subject to regulatory approvals.
On the other hand, Larsen & Toubro (L&T) surged 4% after the company reported strong earnings for the quarter ended June 30. The engineering conglomerate’s net profit rose 24.5% year-on-year to Rs 2,825 crore, driven by a 14.5% increase in revenue. The stock’s gains were also supported by positive comments from analysts, who noted that L&T’s order book remains robust and its execution capabilities are improving.
Analysts are expecting the Indian markets to remain rangebound in the near term, with the Nifty 50 index likely to trade between 24,680 and 24,920. The range is attributed to the ongoing uncertainty surrounding the Fed’s monetary policy decision and the India-US trade talks. Additionally, foreign institutional investors (FIIs) are expected to continue selling Indian stocks, which could fuel near-term volatility.
Another factor that could impact the markets is the upcoming MSCI rebalancing exercise. MSCI, a leading provider of equity indexes, is scheduled to rebalance its indices on August 3. The exercise is expected to result in changes to the composition of various indexes, including the MSCI Emerging Markets Index. While the impact of the rebalancing exercise is likely to be limited, it could still cause some short-term volatility in the markets.
In other market news, the Sensex opened flat, with the benchmark index trading near 81,450. The index was supported by gains in stocks such as Hindustan Unilever, ICICI Bank, and Axis Bank. However, the index was weighed down by declines in stocks such as Tata Motors, Bharti Airtel, and Hindalco Industries.
Overall, the Indian markets are likely to remain volatile in the near term, with traders awaiting cues from the Fed’s meeting and India-US trade talks. While L&T’s strong earnings and Tata Motors’ M&A plans could support the markets, FIIs’ selling and MSCI rebalancing could fuel near-term volatility.
Source: https://stocktwits.com/news-articles/markets/equity/nifty-sensex-open-steady-july-30/choQYNdR5yC
