Nifty Opens Steady; L&T Gains, Tata Motors Slips on M&A Buzz
The Indian markets opened flat on Monday, with traders awaiting cues from the Federal Reserve’s policy meeting and India-US trade talks. The Nifty traded near 24,860, with a range of 24,680 to 24,920 expected for the near term. Analysts pointed out that foreign institutional investors (FIIs) may sell and MSCI rebalancing could fuel near-term volatility.
Nifty and Sensex Open Steady
The Nifty 50 index opened at 24,846.15, up 0.05%, while the Sensex opened at 85,432.15, up 0.04%. The market breadth was mixed, with 15 of the 30 Nifty stocks trading in the green and 15 in the red.
Tata Motors Slips on M&A Buzz
Tata Motors was one of the top losers, sliding 3% to Rs 424.25, on reports that the company is in talks to buy Iveco, the truck-making arm of CNH Industrial. The deal is reportedly worth around $3.7 billion. The acquisition could help Tata Motors expand its presence in the global commercial vehicle market.
L&T Soars on Strong Earnings
Larsen & Toubro (L&T), on the other hand, was one of the top gainers, surging 4% to Rs 1,644.25, after the company reported strong quarterly earnings. The engineering and construction giant posted a net profit of Rs 2,823 crore, beating street estimates. The company’s order book grew by 12% to Rs 3,14,215 crore, driven by robust demand from the infrastructure and construction sectors.
FIIs May Sell, MSCI Rebalancing to Fuel Volatility
Analysts expect the Nifty to trade in a range of 24,680 to 24,920 in the near term, driven by FII selling and MSCI rebalancing. “We expect the Nifty to trade in a narrow range of 24,680 to 24,920 in the near term, as the market awaits cues from the Fed meeting and India-US trade talks,” said a report by Motilal Oswal Securities. “FIIs may sell and MSCI rebalancing could fuel near-term volatility.”
The US Federal Reserve is set to conclude its two-day policy meeting on Wednesday, and traders are keenly awaiting the outcome. A rate hike could boost the dollar and lead to outflows from emerging markets, including India.
Meanwhile, the India-US trade talks are also underway, with the US seeking to increase its trade deficit with India. The talks are expected to impact Indian markets, with investors keenly watching the outcome.
Overall, the market is expected to remain rangebound in the near term, with FIIs and MSCI rebalancing playing a key role in market movements. Traders are advised to be cautious and wait for clearer cues from the Fed meeting and India-US trade talks before making any major investment decisions.
Source: https://stocktwits.com/news-articles/markets/equity/nifty-sensex-open-steady-july-30/choQYNdR5yC
