Nifty Opens Steady; L&T Gains, Tata Motors Slips on M&A Buzz
The Indian markets opened flat on July 30, with investors awaiting cues from the Federal Reserve’s meeting and India-US trade talks. The Nifty traded near 24,860, with analysts expecting rangebound moves between 24,680 and 24,920 in the near term.
The Indian rupee opened slightly stronger at 74.28 per dollar, while the 10-year government bond yield rose to 6.45%. The market is likely to remain volatile in the near term due to Foreign Institutional Investors (FIIs) selling and MSCI rebalancing.
L&T Surges 4% on Strong Earnings
Larsen & Toubro (L&T) was the biggest gainer in the Sensex pack, surging 4% after the company reported strong earnings for the quarter ended June 30. The engineering major’s net profit rose 24% year-on-year to Rs 3,430 crore, driven by robust performance in its construction, infrastructure, and heavy engineering segments.
L&T’s revenue grew 14% year-on-year to Rs 44,620 crore, driven by a 15% increase in revenue from its construction segment and a 12% increase in revenue from its infrastructure segment. The company’s order inflow also rose 15% year-on-year to Rs 63,400 crore.
Tata Motors Slips 3% on Iveco Buyout Reports
Tata Motors slipped 3% after reports emerged that the company is in talks to acquire Iveco, an Italian truck and van manufacturer, for around $3.5 billion. The acquisition is reportedly being driven by Tata Motors’ desire to expand its presence in the global commercial vehicle market.
Iveco has a significant presence in Europe and Latin America, and the acquisition would give Tata Motors a foothold in these regions. However, the deal is still in the talks stage, and there is no certainty that it will go through.
Market Outlook
Analysts expect the Nifty to trade in a range of 24,680 to 24,920 in the near term, driven by FIIs selling and MSCI rebalancing. The market is likely to remain volatile due to the uncertainty surrounding the Fed’s meeting and India-US trade talks.
“FIIs have been selling Indian equities in recent weeks, and this trend is likely to continue in the near term,” said a Mumbai-based analyst. “Additionally, MSCI rebalancing may lead to some near-term volatility in the market.”
Key Quotes
- “L&T’s strong earnings and robust order inflow are positive for the stock,” said an analyst at a Mumbai-based brokerage.
- “The Iveco acquisition would be a significant step forward for Tata Motors in the global commercial vehicle market,” said another analyst.
Conclusion
The Indian markets opened flat on July 30, with investors awaiting cues from the Federal Reserve’s meeting and India-US trade talks. L&T surged 4% on strong earnings, while Tata Motors slipped 3% on reports of its plans to acquire Iveco. Analysts expect rangebound moves in the near term, driven by FIIs selling and MSCI rebalancing.
Source:
https://stocktwits.com/news-articles/markets/equity/nifty-sensex-open-steady-july-30/choQYNdR5yC
