Nifty Opens Steady; L&T Gains, Tata Motors Slips on M&A Buzz
The Indian markets opened flat on July 30, with traders awaiting cues from the ongoing Federal Reserve meeting and India-US trade talks. The Nifty50 index traded near 24,860, while the Sensex was steady around 26,600. The market’s momentum was influenced by mixed earnings reports and M&A buzz, leading to a rangebound trading session.
The benchmark indices, Nifty50 and Sensex, opened with a lackluster performance, reflecting the cautious sentiment among investors. The Nifty50 started the day at 24,844 and hovered around 24,860, while the Sensex opened at 26,584 and traded near 26,600. The indices were unable to make significant gains or losses, indicating a steady opening.
Among the sectoral indices, the Nifty Metal index was the top gainer, rising 1.5% due to strong earnings from Hindalco and JSW Steel. The Nifty PSU Bank index also gained 1.2% after the government announced plans to infuse capital into state-owned lenders.
On the other hand, the Nifty Auto index slipped 0.8% due to weakness in Tata Motors, which slid 3% on reports that the company is in talks to acquire Italy-based Iveco. The acquisition would give Tata Motors access to Iveco’s global network and expand its presence in the commercial vehicle market. The news sent shockwaves through the market, causing investors to book profits in Tata Motors shares.
Larsen & Toubro (L&T), on the other hand, surged 4% after the company reported strong earnings for the quarter ended June 30. The engineering giant’s net profit rose 14.4% year-on-year to ₹3,688 crore, while its revenue grew 12.1% to ₹33,941 crore. The company’s strong earnings report boosted investor confidence, leading to a significant gain in its shares.
Other stocks that made significant moves were Hindustan Unilever, which gained 2.2% after reporting strong earnings, and ICICI Bank, which rose 1.8% on expectations of a robust quarterly performance.
Analysts expect the Indian markets to remain rangebound in the near term, with the Nifty trading between 24,680 and 24,920. The market is likely to be influenced by foreign institutional investor (FII) selling and MSCI rebalancing, which could lead to increased volatility.
FIIs have been net sellers in the Indian market for the past few days, selling shares worth ₹1,400 crore on July 29. This selling pressure could continue, leading to a decline in the market. On the other hand, MSCI rebalancing, which is scheduled to take place on August 3, could lead to a buying spree in the market.
The Indian rupee also remained steady against the US dollar, trading at 70.47. The rupee has been under pressure due to rising oil prices and a widening trade deficit. However, the government’s efforts to curb imports and boost exports could help stabilize the rupee.
In conclusion, the Indian markets opened steady on July 30, with traders awaiting cues from the Federal Reserve meeting and India-US trade talks. The Nifty50 traded near 24,860, while the Sensex was steady around 26,600. The market’s momentum was influenced by mixed earnings reports and M&A buzz, leading to a rangebound trading session. Analysts expect the market to remain rangebound in the near term, with the Nifty trading between 24,680 and 24,920.
Source: https://stocktwits.com/news-articles/markets/equity/nifty-sensex-open-steady-july-30/choQYNdR5yC
