Nifty Opens Steady; L&T Gains, Tata Motors Slips on M&A Buzz
The Indian stock market opened flat on Monday, July 30, as traders awaited cues from the Federal Reserve meeting and India-US trade talks. The Nifty50 index traded near 24,860, indicating a lack of direction in the market. While some stocks rose on strong earnings and merger and acquisition (M&A) buzz, others slipped on profit-taking and sectoral weakness.
Larsen & Toubro (L&T), one of India’s largest engineering and construction companies, was among the top gainers, surging 4% after reporting strong earnings for the quarter ended June 30. The company’s consolidated net profit rose 24.5% year-on-year to Rs 2,941.5 crore, driven by strong performance in its engineering and construction businesses.
On the other hand, Tata Motors, India’s largest automaker, slipped 3% on reports that the company is in talks to acquire Iveco, the commercial vehicle business of Italian conglomerate CNH Industrial. The deal, if successful, would mark Tata Motors’ entry into the European commercial vehicle market and provide a boost to its global presence.
The Indian market has been rangebound in recent weeks, with the Nifty50 index trading between 24,680 and 24,920. Analysts expect this trend to continue in the short term, driven by factors such as foreign institutional investor (FII) selling and the MSCI rebalancing exercise.
FIIs have been net sellers in the Indian market for several weeks, with their selling pressure contributing to the market’s volatility. The MSCI rebalancing exercise, which is scheduled to take place on August 13, could also impact the market in the coming days. The exercise involves rebalancing the MSCI Emerging Markets Index, which could lead to changes in the composition of the index and potentially impact the performance of Indian stocks.
In other news, the Indian government is set to hold talks with the US government on trade issues, including trade tariffs and market access. The talks, which are scheduled to take place on July 30-31, are expected to be a key event for the Indian market, with investors looking for clarity on the trade negotiations.
The Indian market has been sensitive to trade tensions in recent months, with the Nifty50 index falling sharply in response to retaliatory tariffs imposed by the US and China. A negotiated settlement to the trade dispute could provide a boost to the market, while a failure to reach an agreement could lead to further volatility.
In the currency market, the rupee was trading at 69.45 against the US dollar, down 0.2% from its previous close. The yield on the 10-year government bond was at 7.14%, up 2 basis points from its previous close.
In conclusion, the Indian market opened flat on Monday, July 30, as traders awaited cues from the Federal Reserve meeting and India-US trade talks. While some stocks rose on strong earnings and M&A buzz, others slipped on profit-taking and sectoral weakness. Analysts expect the market to remain rangebound in the short term, driven by factors such as FII selling and MSCI rebalancing. The outcome of the trade talks between the Indian and US governments will be a key event for the market in the coming days.
Source: https://stocktwits.com/news-articles/markets/equity/nifty-sensex-open-steady-july-30/choQYNdR5yC
