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 (Fed) meeting and India-US trade talks. The benchmark Nifty50 index traded near 24,860, while the Sensex was steady at 27,580.
Among the major stocks, Larsen & Toubro (L&T) surged 4% after the company reported strong earnings for the quarter ended June 30. On the other hand, Tata Motors declined 3% on reports of a possible buyout of its Iveco business.
Analysts expect the Indian markets to remain rangebound in the near term, with a trading range of 24,680-24,920. They attribute this to the likelihood of foreign institutional investors (FIIs) selling their positions and the MSCI rebalancing exercise, which could fuel near-term volatility.
“The market is likely to remain rangebound in the short term, with the Nifty50 index trading between 24,680-24,920,” said a leading analyst. “The Fed meeting and India-US trade talks will be crucial in determining the market’s direction.”
The Indian markets have been volatile in recent weeks, with the Nifty50 index erasing gains made earlier in the year. The index has struggled to break above the 25,000 mark, which has been a key psychological level.
However, analysts believe that the Indian markets remain attractive, with the economy showing signs of recovery. The country’s GDP growth rate accelerated to 7.2% in the quarter ended June 30, driven by a strong performance from the services sector.
L&T’s quarterly earnings report was a major positive, with the company reporting a 24% year-on-year (YoY) increase in net profit to Rs 2,383 crore. The company’s revenue grew 15% YoY to Rs 27,833 crore.
L&T’s strong earnings report was driven by a pickup in demand from the infrastructure and construction sectors. The company’s order book also grew 15% YoY to Rs 2,86,000 crore.
Tata Motors, on the other hand, declined 3% on reports of a possible buyout of its Iveco business. The company’s Iveco business has been under pressure in recent years, with declining sales and profits.
However, analysts believe that a buyout of the Iveco business could be a positive for Tata Motors, as it would allow the company to focus on its core business of passenger vehicles and commercial vehicles.
In other news, the Indian government is expected to announce its decision on the sale of its 10% stake in IndianOil Corporation (IOC) soon. The stake sale is expected to fetch the government around Rs 10,000 crore.
The Indian markets are also awaiting the outcome of the India-US trade talks, which are expected to have an impact on the country’s exports and imports. The talks have been ongoing for several months, with the US and India negotiating on a range of issues, including tariffs and trade barriers.
In conclusion, the Indian markets opened flat on July 30, with investors awaiting cues from the Fed meeting and India-US trade talks. L&T surged 4% after strong earnings, while Tata Motors declined 3% on Iveco buyout reports. Analysts expect the markets to remain rangebound in the near term, with a trading range of 24,680-24,920.
Source: https://stocktwits.com/news-articles/markets/equity/nifty-sensex-open-steady-july-30/choQYNdR5yC
