Nifty Opens Steady; L&T Gains, Tata Motors Slips on M&A Buzz
The Indian equity markets opened flat on July 30, with traders awaiting cues from the ongoing Federal Reserve meeting and India-US trade talks. The Nifty50 index traded near the 24,860 level, with a range of 24,680-24,920 expected for the near term. Analysts believe that foreign institutional investors (FIIs) selling and MSCI rebalancing may fuel near-term volatility.
The market’s lackluster start was attributed to a lack of clear direction, with investors opting to wait for cues from the Fed meeting and trade talks. The Nifty50 index opened 0.1% higher at 24,842, while the Sensex started the day 0.15% higher at 26,444.
However, certain stocks managed to buck the trend, with Larsen & Toubro (L&T) being one of the top gainers. The engineering and construction major surged 4% after reporting strong earnings for the quarter ended June 30. L&T’s net profit rose 22.4% year-on-year to ₹2,247 crore, driven by a strong performance in its construction and infrastructure business.
On the other hand, Tata Motors, the parent company of Jaguar Land Rover, slipped 3% after reports emerged that the company was in talks to buy the Italian truckmaker Iveco. The news sent shockwaves through the market, with investors worried about the potential dilution of Tata Motors’ focus on its core business.
Iveco, a leading manufacturer of commercial vehicles, has been struggling in recent years, with declining sales and a significant debt burden. The acquisition would likely require a significant investment from Tata Motors, which could dilute its focus on its core passenger vehicle business.
The news also sparked concerns about the potential impact on Jaguar Land Rover’s operations in Europe. The UK-based luxury carmaker has been struggling to meet emission norms, and an acquisition of Iveco could potentially divert resources away from its core business.
Elsewhere, the rupee opened flat at 74.15 per dollar, with the currency expected to remain under pressure due to rising oil prices and a widening current account deficit.
In the broader market, the S&P BSE MidCap index rose 0.2%, while the S&P BSE SmallCap index gained 0.3%. The Nifty50 index’s top gainers included L&T, Hindustan Unilever, and Bajaj Finserv, while the top losers included Tata Motors, Sun Pharma, and Dr. Reddy’s Laboratories.
In terms of sectoral performance, the Nifty Auto index was the top loser, down 0.5% due to the decline in Tata Motors. The Nifty Bank index was flat, while the Nifty Finance index rose 0.2%.
In the foreign exchange market, the rupee traded flat against the dollar, with the currency expected to remain under pressure due to rising oil prices and a widening current account deficit.
Overall, the Indian equity markets are expected to remain rangebound in the near term, with analysts expecting a range of 24,680-24,920 for the Nifty50 index. FIIs selling and MSCI rebalancing are likely to fuel near-term volatility, making it an exciting time for investors to stay invested and ride the waves.
Source: https://stocktwits.com/news-articles/markets/equity/nifty-sensex-open-steady-july-30/choQYNdR5yC
