Nifty Opens Steady; L&T Gains, Tata Motors Slips on M&A Buzz
Indian markets opened flat on Wednesday, with traders awaiting cues from the Federal Reserve’s meeting and India-US trade talks. The Nifty traded near 24,860, with a range of 24,680-24,920 expected for the day. Analysts believe that foreign institutional investors (FIIs) selling and MSCI rebalancing could fuel near-term volatility.
Larsen & Toubro (L&T) was a major gainer, surging 4% after the company reported strong earnings. The engineering and construction major’s net profit rose 15% to Rs 3,164 crore in the June quarter, beating estimates. The stock’s rally was also fueled by a rise in its order book, which increased by 14% to Rs 2.43 lakh crore during the quarter.
On the other hand, Tata Motors slipped 3% as reports of its plans to buy Iveco, the commercial vehicle unit of Italian automaker CNH Industrial, fueled concerns over debt. The deal, which is valued at around Rs 10,000 crore, would help Tata Motors expand its presence in the global commercial vehicle market.
The broader market also saw some action, with the BSE Midcap and Smallcap indices rising 0.5% and 0.7%, respectively. The Nifty 50 index was trading 0.2% higher, with gains in stocks like Hindustan Unilever, ITC, and HCL Technologies offsetting losses in Tata Motors and State Bank of India.
The Fed’s meeting, which is scheduled for later in the day, will be closely watched by investors. The central bank is expected to keep interest rates unchanged, but any changes to its forward guidance could impact market sentiment.
The India-US trade talks, which are also ongoing, will be another key factor to watch. The two countries are expected to discuss issues like trade tariffs, intellectual property rights, and agricultural exports. Any progress on these fronts could boost investor sentiment and drive the markets higher.
In the currency market, the rupee was trading flat against the US dollar, with the dollar index rising 0.1%. The rupee has been under pressure in recent weeks due to a rise in crude oil prices and a decline in the value of the US dollar.
In the commodity market, crude oil prices rose 0.5% to $63.50 per barrel, extending gains from the previous session. The fall in US crude oil inventories and a rise in global demand have supported prices in recent weeks.
In conclusion, the Indian markets opened steady on Wednesday, with L&T surging 4% on strong earnings and Tata Motors slipping 3% on M&A buzz. Analysts expect rangebound moves between 24,680-24,920, with FII selling and MSCI rebalancing likely to fuel near-term volatility. The Fed’s meeting and India-US trade talks will be closely watched by investors, and any developments could impact market sentiment.
Source: https://stocktwits.com/news-articles/markets/equity/nifty-sensex-open-steady-july-30/choQYNdR5yC
