Nifty Opens Steady; L&T Gains, Tata Motors Slips on M&A Buzz
The Indian markets opened flat on Monday, July 30, as traders awaited cues from the Federal Reserve meeting and India-US trade talks. The Nifty50 index traded near 24,860, with a range of 24,680-24,920 expected for the day, according to analysts. Meanwhile, L&T shares surged 4% after the company reported strong earnings, while Tata Motors slipped 3% on reports of a potential buyout of its Iveco business.
The Nifty50 index opened at 24,858.10, up 0.1% from the previous close, while the Sensex50 index opened at 26,444.11, up 0.2%. The broader markets were also steady, with the Nifty Midcap 100 index up 0.1% and the Nifty Smallcap 100 index up 0.2%.
L&T’s strong earnings report was the key driver of gains in the stock, which surged 4% to Rs 1,432.50. The company reported a 23% year-on-year (YoY) increase in net profit to Rs 3,442 crore, driven by strong performance across its various businesses.
On the other hand, Tata Motors was a major loser, slipping 3% to Rs 173.50, after reports emerged of a potential buyout of its Iveco business. The company has reportedly received interest from several suitors, including Chinese automaker Geely, and is expected to announce a deal in the coming days.
The M&A buzz surrounding Tata Motors and other companies is expected to continue to drive volatility in the Indian markets in the near term. Foreign institutional investors (FIIs) have been selling Indian stocks in recent weeks, and the ongoing MSCI rebalancing exercise is also likely to fuel near-term volatility.
“The Indian markets are likely to remain rangebound in the near term, with a range of 24,680-24,920 expected for the Nifty50 index,” said Rajesh Sharma, head of research at Karvy Stock Broking. “The MSCI rebalancing exercise is likely to lead to some near-term volatility, and FIIs selling is also a concern. However, the economy is showing signs of recovery, and the earnings season has been strong so far. This should keep investors interested in the Indian markets.”
The Indian rupee also opened steady, trading at 70.45 against the US dollar, down 0.03% from the previous close.
In other news, the Indian government is expected to announce its decision on the production-linked incentive (PLI) scheme for the auto sector later this week. The scheme, which aims to boost domestic manufacturing and exports, is expected to benefit companies such as Tata Motors, Mahindra & Mahindra, and Hero MotoCorp.
Overall, the Indian markets are likely to remain steady in the near term, with a range of 24,680-24,920 expected for the Nifty50 index. However, the M&A buzz and FII selling are likely to fuel near-term volatility, and investors should remain cautious.
Source: https://stocktwits.com/news-articles/markets/equity/nifty-sensex-open-steady-july-30/choQYNdR5yC
