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 Federal Reserve’s (Fed) interest rate meeting and India-US trade talks. The Nifty index traded near 24,860, with a range of 24,680-24,920 expected in the near term. Analysts pointed to foreign institutional investor (FII) selling and the MSCI rebalancing as potential catalysts for volatility in the market.
L&T Surges 4% on Strong Earnings
Larsen & Toubro (L&T), the engineering and construction major, was the top gainer on the Nifty index, surging 4% to Rs 1,438.50 per share. The company’s strong quarterly earnings, which beat market expectations, contributed to the gains. L&T’s consolidated net profit rose 23% year-on-year (YoY) to Rs 3,410 crore, driven by higher revenue and operating margins.
Tata Motors Slides 3% on Iveco Buyout Reports
Tata Motors, the automobile major, was the top loser on the Nifty index, sliding 3% to Rs 242.50 per share, on reports that it is considering a buyout of Iveco, the Italian truck maker. The acquisition would be Tata Motors’ largest overseas deal and would help the company expand its presence in the global commercial vehicle market.
Fed Meeting and India-US Trade Talks in Focus
The Indian markets are likely to be influenced by the outcome of the Fed’s interest rate meeting, which is scheduled for July 30-31. The central bank is expected to cut interest rates to boost the economy, but the timing and extent of the rate cut remain uncertain.
Meanwhile, the India-US trade talks are also in focus, with the US President Donald Trump and Indian Prime Minister Narendra Modi expected to discuss trade issues, including tariffs and agricultural exports. A breakthrough in the talks could boost sentiment in the Indian markets.
MSCI Rebalancing to Fuel Volatility
The MSCI rebalancing, which is expected to take place on August 1, could also impact the Indian markets. The rebalancing, which is done to maintain the representation of various countries and sectors in the MSCI indices, could lead to buying or selling pressure in specific stocks and sectors.
FII Selling to Continue
Foreign institutional investors (FIIs) have been selling Indian stocks in recent weeks, driven by concerns over the global economy and the US-China trade war. The FII selling is likely to continue in the near term, which could put pressure on the Indian markets.
Rangebound Moves Expected
Analysts expect the Indian markets to trade in a range of 24,680-24,920 in the near term, with the Nifty index likely to oscillate between the two levels. The rangebound moves are likely to be driven by the FII selling and the MSCI rebalancing, with the outcome of the Fed meeting and the India-US trade talks influencing the market’s direction.
In conclusion, the Indian markets opened flat on July 30, with traders awaiting cues from the Fed meeting and India-US trade talks. L&T surged 4% on strong earnings, while Tata Motors slipped 3% on Iveco buyout reports. Analysts expect rangebound moves between 24,680-24,920, with FII selling and MSCI rebalancing likely to fuel near-term volatility.
Source:
https://stocktwits.com/news-articles/markets/equity/nifty-sensex-open-steady-july-30/choQYNdR5yC
