Nifty Opens Steady; L&T Gains, Tata Motors Slips on M&A Buzz
Indian markets opened flat on a cautious note, waiting for cues from the Federal Reserve’s meeting and India-US trade talks. The Nifty 50 traded near 24,860, while the Sensex held steady around 27,560. Analysts expect the markets to remain rangebound between 24,680 and 24,920 in the near term, with foreign institutional investors (FIIs) and MSCI rebalancing likely to fuel volatility.
L&T Shares Soar 4% on Strong Earnings
Larsen & Toubro (L&T) shares surged 4% to Rs 1,460 after the company reported strong earnings for the quarter ending June 30. The engineering conglomerate’s revenue grew 24% year-on-year (YoY) to Rs 52,433 crore, while profit before tax (PBT) increased 33% YoY to Rs 8,614 crore.
The company’s order inflow also witnessing a significant increase, growing 43% YoY to Rs 1,13,453 crore. L&T’s management guided for a revenue growth of 15-20% for the current fiscal year, which is higher than the street expectations.
Tata Motors Slides 3% on Iveco Buyout Reports
Tata Motors shares slipped 3% to Rs 174.50 after reports emerged that the company is in talks to acquire Italy-based Iveco, a leading manufacturer of commercial vehicles. The deal is expected to be worth around $6.2 billion.
The acquisition would help Tata Motors expand its presence in the global commercial vehicle market and increase its competitiveness. However, the deal also poses risks, including integration challenges and potential losses due to the acquisition.
FIIs Sell, MSCI Rebalancing to Fuel Volatility
FIIs sold Indian stocks worth Rs 1,114 crore on July 29, taking their cumulative sales to Rs 17,444 crore in the past five trading sessions. The selling pressure is likely to continue, driven by concerns over global trade tensions and the impact on India’s economic growth.
MSCI rebalancing, which is scheduled to take place on August 3, is also expected to fuel near-term volatility. The rebalancing process involves rebalancing the constituents of the MSCI indices, which can lead to changes in the market capitalization and weightage of Indian stocks.
Rangebound Moves Expected
Analysts expect the Nifty 50 to trade rangebound between 24,680 and 24,920 in the near term. The broader market is expected to remain subdued, with the Nifty Smallcap 100 trading around 22,500 and the Nifty Midcap 100 hovering around 23,300.
The Indian rupee also traded flat against the US dollar, with the dollar index hovering around 98.50. The rupee is expected to remain under pressure due to the widening trade deficit and expected intervention by the Reserve Bank of India (RBI) to stabilize the currency.
Conclusion
The Indian markets opened flat on a cautious note, awaiting cues from the Federal Reserve’s meeting and India-US trade talks. L&T shares surged 4% on strong earnings, while Tata Motors slid 3% on Iveco buyout reports. FIIs are expected to continue selling, and MSCI rebalancing is likely to fuel near-term volatility. Analysts expect the markets to remain rangebound between 24,680 and 24,920 in the near term.
News Source:
https://stocktwits.com/news-articles/markets/equity/nifty-sensex-open-steady-july-30/choQYNdR5yC
