Nifty Opens Steady; L&T Gains, Tata Motors Slips on M&A Buzz
The Indian equity market opened flat on July 30, with investors awaiting cues from the Federal Reserve’s meeting and India-US trade talks. The Nifty 50 index traded near the 24,860 mark, with a rangebound outlook expected between 24,680 and 24,920.
The benchmark indices, Nifty and Sensex, opened little changed, with the Nifty 50 index rising 0.05% to 24,858.50, while the BSE Sensex gained 0.06% to 26,655.50. The broader markets also traded flat, with the Nifty Smallcap 100 index rising 0.15% and the Nifty Midcap 100 index falling 0.15%.
L&T Surges 4% on Strong Earnings
Larsen & Toubro (L&T), India’s largest engineering and construction company, was among the top gainers, surging 4% to Rs 1,234.50 after reporting strong quarterly earnings. The company’s net profit rose 23.5% year-on-year to Rs 2,344.4 crore, beating analyst estimates. The stock has been a consistent performer in the recent past, and the strong earnings have further boosted investor confidence.
Tata Motors Slips 3% on Iveco Buyout Reports
Tata Motors, India’s largest automaker, slipped 3% to Rs 174.20 after reports emerged that its Italian rival, Iveco, was in talks with rival bidder, CNH Industrial, to sell its truck and bus business. The move may impact Tata Motors’ plans to acquire Iveco’s commercial vehicle business. The stock has been trading volatile in recent times, and the M&A buzz may continue to impact its price action in the near term.
FII Selling and MSCI Rebalancing to Fuel Near-Term Volatility
Analysts expect the market to remain rangebound in the near term, with FII (Foreign Institutional Investor) selling and MSCI rebalancing likely to fuel volatility. The FII selling has been a major concern for the market, with foreign investors pulling out over $6 billion from Indian equities in July. The MSCI rebalancing, which is scheduled for August 3, may also lead to some churn in the market.
Sectoral Trends
The sectoral trends were mixed, with Realty and Healthcare indices leading the gains, while Financial Services and Metals indices traded lower. The Realty index rose 1.5%, led by gains in stocks like DLF, Unitech, and Indiabulls Real Estate. The Healthcare index also rose 1.2%, led by gains in stocks like Sun Pharma, Dr. Reddy’s Laboratories, and Cipla.
What to Expect Next
The market is likely to remain rangebound in the near term, with investors awaiting cues from the Fed meeting and India-US trade talks. The FII selling and MSCI rebalancing may continue to impact the market, leading to some near-term volatility. Investors are advised to focus on quality stocks with strong fundamentals and to maintain a cautious approach in the current market environment.
News Source
https://stocktwits.com/news-articles/markets/equity/nifty-sensex-open-steady-july-30/choQYNdR5yC
