Nifty Opens Steady; L&T Gains, Tata Motors Slips on M&A Buzz
The Indian equities market opened flat on Monday, as traders awaited cues from the Federal Reserve’s monetary policy meeting and the ongoing India-US trade talks. The Nifty50 index traded near 24,860, with a range of 0.1% to 0.2% in the first hour of trade.
The market’s cautious start can be attributed to the lack of major triggers, with the Reserve Bank of India’s (RBI) monetary policy decision scheduled for later this week. The RBI is expected to maintain its accommodative stance, but the market will be closely watching the central bank’s inflation projections and guidance on interest rates.
On the global front, the US dollar index edged higher, supported by the greenback’s gains against major currencies. This, in turn, weighed on the Indian rupee, which slipped to 78.35 against the US dollar.
In the corporate space, Tata Motors (TAMO) was the biggest loser, sliding 3% after reports emerged that the company is in talks to acquire Iveco, the commercial vehicles unit of CNH Industrial. The deal is expected to be worth around $1.5 billion and would give Tata Motors a significant foothold in the European commercial vehicles market.
On the other hand, Larsen & Toubro (LARTY) surged 4% after the company reported strong quarterly earnings. The engineering and construction major’s net profit rose 24% year-on-year to ₹4,344 crore, driven by robust growth in its construction and infrastructure segments.
Analysts expect the market to remain rangebound in the near term, with a trading range of 24,680-24,920. The benchmark indices are likely to be influenced by foreign institutional investors (FIIs), who have been selling Indian stocks in recent sessions. Additionally, the MSCI rebalancing exercise, which is scheduled for this week, could lead to some near-term volatility.
The FII sell-off has been a major concern for the market, with foreign investors offloading shares worth ₹12,000 crore in the past week alone. This has led to a significant increase in the market’s volatility, with the Nifty50 index experiencing a daily range of over 1% in the past week.
Despite the challenges, some analysts remain bullish on the market, citing strong earnings growth and a robust economy. The Indian economy is expected to grow at around 7.5% this year, driven by a pick-up in industrial production and consumer spending.
In terms of sectoral performance, the Nifty50 index was trading flat, with the IT and pharma sectors leading the gains. The Nifty IT index rose 0.5% to 34,640, while the Nifty Pharma index gained 0.4% to 13,650.
The Nifty Bank index traded flat, while the Nifty Finance index rose 0.2%. The Nifty Midcap index was down 0.2%, while the Nifty Smallcap index fell 0.5%.
The Indian rupee was trading at 78.35 against the US dollar, while the Brent crude oil price was at $69.50 a barrel.
Market Data
- Nifty50: 24,860, up 0.1%
- Sensex: 27,540, up 0.1%
- Nifty IT: 34,640, up 0.5%
- Nifty Pharma: 13,650, up 0.4%
- Nifty Bank: 28,440, flat
- Nifty Finance: 14,750, up 0.2%
- Nifty Midcap: 19,440, down 0.2%
- Nifty Smallcap: 14,240, down 0.5%
- Indian rupee: 78.35 against the US dollar
- Brent crude oil: $69.50 a barrel
Source
https://stocktwits.com/news-articles/markets/equity/nifty-sensex-open-steady-july-30/choQYNdR5yC
