Markets open firm backed by L&T Rally; Global cues, FII sell-off keep traders cautious


Daijiworld Media Network- Mumbai

Mumbai, Jul 30: Indian stock markets opened on a positive note on Wednesday, driven by a strong rally in infrastructure giant Larsen & Toubro (L&T), even as global uncertainties and continued FII outflows weighed on investor sentiment.

The benchmark 30-share BSE Sensex surged 256.57 points in early trade to 81,594.52, while the broader 50-share NSE Nifty gained 69.3 points to open at 24,890.40.

Leading the rally was Larsen & Toubro, which jumped over 4 per cent after the company posted a robust 29.8 per cent year-on-year rise in consolidated net profit to Rs 3,617.19 crore for the June quarter. The strong performance was attributed to solid growth in overseas orders.

Other gainers on the Sensex included Bharti Airtel, Asian Paints, NTPC, and Bajaj Finserv. However, Tata Motors, Hindustan Unilever, Infosys, and Eternal registered losses in early trade.

Despite the upbeat opening, market analysts remain cautious. Foreign Institutional Investors (FIIs) continued their selling spree for the seventh straight session, offloading equities worth Rs 4,636.60 crore on Tuesday, as per exchange data.

Global cues offered a mixed picture. Japan’s Nikkei 225 and Hong Kong’s Hang Seng were trading lower, while South Korea’s Kospi and Shanghai’s SSE Composite Index moved into positive territory. On Wall Street, major US indices ended in the red on Tuesday.

Adding to the market’s nervousness, US President Donald Trump indicated that the trade deal with India has not been finalised. Speaking to reporters aboard Air Force One, Trump hinted at potential tariffs of 20–25 per cent on Indian goods, raising concerns over India-US trade relations.

Commenting on the developments, VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, “The technical bounce back in Nifty by 140 points yesterday is unlikely to continue amid a weak near-term outlook. The persistent FII selling, negative cues from the India-US trade front, and a spike in Brent crude are likely to act as hurdles.”

Meanwhile, Brent crude traded marginally lower at USD 72.50 per barrel, dipping 0.01 per cent.

On Tuesday, the Sensex had rallied 446.93 points to close at 81,337.95, while the Nifty ended 140.20 points higher at 24,821.10, supported by short-term technical recovery.

With the earnings season in full swing and global macro trends unfolding, market participants are advised to tread cautiously.

  

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Title: Markets open firm backed by L&T Rally; Global cues, FII sell-off keep traders cautious



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