Nifty Opens Steady; L&T Gains, Tata Motors Slips on M&A Buzz
The Indian stock market opened flat on July 30, with investors awaiting cues from the Federal Reserve’s monetary policy meeting and US-India trade talks. The Nifty 50 index traded near 24,860, with a range of 24,680-24,920 expected for the near term. The market is likely to experience volatility due to Foreign Institutional Investor (FII) selling and MSCI rebalancing.
Tata Motors Slips 3% on Iveco Buyout Reports
Tata Motors, the country’s largest automaker, slipped 3% after reports emerged that the company is in talks to acquire Iveco, the Italian commercial vehicle manufacturer. Iveco is a subsidiary of CNH Industrial, and the acquisition would be a significant move for Tata Motors to expand its global presence. The news sent shockwaves through the market, with investors worried about the potential impact on Tata Motors’ financials and future prospects.
L&T Surges 4% on Strong Earnings
On the other hand, Larsen & Toubro (L&T), the engineering conglomerate, surged 4% after reporting strong earnings for the quarter ended June 30. The company’s net profit rose 34.5% year-on-year to ₹3,367 crore, driven by strong performances from its construction and infrastructure segments. The news was well-received by investors, who sent the stock price soaring.
FII Selling to Continue
Despite the mixed performance of individual stocks, the overall market is expected to remain rangebound in the near term. Foreign Institutional Investors (FIIs) are likely to continue selling Indian stocks, which could put pressure on the market. FIIs have been net sellers of Indian equities for several months, citing concerns over the country’s economic growth and valuation multiples.
MSCI Rebalancing to Fuel Volatility
The market is also likely to experience volatility due to MSCI rebalancing, which is scheduled to take place later this month. MSCI, the global index provider, rebalances its indices regularly to maintain the desired benchmarks. The rebalancing process involves buying and selling stocks to ensure that the indices remain representative of the market’s performance. This can lead to increased volatility, as investors adjust their portfolios to reflect the changes.
Rangebound Market Expected
Analysts expect the Nifty 50 index to trade within a range of 24,680-24,920 in the near term. The market is likely to be driven by earnings releases, macroeconomic data, and global events. The Reserve Bank of India (RBI) is also expected to announce its monetary policy decision in the coming weeks, which could have a significant impact on the market.
Conclusion
In conclusion, the Indian stock market opened flat on July 30, with traders awaiting cues from the Federal Reserve’s monetary policy meeting and US-India trade talks. Tata Motors slid 3% on reports of an Iveco buyout, while L&T surged 4% after strong earnings. Analysts expect rangebound moves in the near term, with FII selling and MSCI rebalancing likely to fuel volatility.
Source
https://stocktwits.com/news-articles/markets/equity/nifty-sensex-open-steady-july-30/choQYNdR5yC
