Nifty Opens Steady; L&T Gains, Tata Motors Slips on M&A Buzz
The Indian equity markets opened flat on Wednesday, with traders waiting for cues from the Federal Reserve’s interest rate decision and India-US trade talks. The benchmark Nifty50 index traded near 24,860, with a mixed bag of stocks showing varying levels of movement.
Among the major movers, Tata Motors slid 3% after reports emerged of the company’s plans to buy out Iveco, an Italian truck manufacturer. The move came as a surprise to many investors, who had not anticipated such a significant M&A deal. On the other hand, Larsen & Toubro (L&T) surged 4% after the company reported strong quarterly earnings, which exceeded market expectations.
The Indian markets have been trading within a narrow range in recent weeks, with analysts expecting rangebound moves between 24,680 and 24,920. The lack of direction from the global markets, combined with Foreign Institutional Investors (FIIs) selling and MSCI rebalancing, is likely to fuel near-term volatility.
“The markets are expected to be rangebound in the near term, with FII selling and MSCI rebalancing likely to create volatility,” said Ravi Singh, Vice President and Head of Research at ShareIndia. “However, the overall trend remains positive, and investors should look for opportunities to buy quality stocks at discounted valuations.”
The Nifty50 index opened flat at 24,850, with the Sensex also trading steady at 34,430. The broader markets were also quiet, with the Nifty Midcap 100 index trading flat and the Nifty Smallcap 100 index falling 0.2%.
Other stocks that made significant moves on Wednesday included Hindalco, which surged 2.5% after reporting strong quarterly earnings. The company’s profits beat market expectations, driven by strong demand for its aluminum products.
In contrast, steel stocks were under pressure, with Tata Steel and JSW Steel falling 2.5% and 2.1%, respectively. The sector has been under pressure in recent weeks, following a decline in global steel prices.
The Indian rupee also traded steady against the US dollar, with the exchange rate hovering around 70.5. The rupee has been under pressure in recent months, driven by a surge in oil prices and a widening trade deficit.
In the global markets, the US markets were trading mixed, with the S&P 500 index falling 0.1% and the Nasdaq Composite index rising 0.2%. The European markets were also trading mixed, with the UK’s FTSE 100 index falling 0.2% and the German DAX index rising 0.1%.
Overall, the Indian markets are expected to remain rangebound in the near term, with investors waiting for cues from the global markets. However, the overall trend remains positive, and investors should look for opportunities to buy quality stocks at discounted valuations.
Source: https://stocktwits.com/news-articles/markets/equity/nifty-sensex-open-steady-july-30/choQYNdR5yC
