Markets look to break tight range

Breaking out Stock market is poised to break a 500-600-point range on either side, as per futures rollover data.

- Ram Sahgal

After two months of muted movement due to tariff tensions, the stock markets are poised to break a 500-600-point range decisively on either side, according to marketwide futures rollover data after the expiry of Thursday's monthly derivatives.

Since the end of June, the Nifty 50 index has received strong support at 24,400-24,500 levels and faced resistance at about 25,000, according to exchange data.

On top of investors' minds is the impact of higher US tariffs on India's gross domestic product (GDP), which surprised on the upside by growing at 7.8% in the June quarter compared with market expectations of a 6.5-7% expansion, primarily due to low inflation.

The rupee, though, plumbed to a record low of 88.21, down 58 paise from a day earlier, while bond yields rose by 3 basis points to 6.56% on concerns over the impact of the tariffs and the possibility that strong economic growth may limit the ability of the Reserve Bank of India (RBI) to cut interest rates.