Markets likely to stay range-bound

Rate cut a response to economic data; US tariffs still weigh: Analysts

- PUNEET WADHWA

The Reserve Bank of India (RBI) on Friday delivered a 25 basis point (bps) repo rate cut analysts expected, driven by the strong 8.2 percent GDP growth in the September quarter.

However, analysts do not expect a runaway market rally as the impact of US tariffs continues. Corporate earnings and the rupee’s trajectory, coupled with the geopolitical situation will determine market sentiment.

The rate cut was not a bolt from the blue, said U R Bhat, cofounder and director, Alphaniti Fintech. Indian markets have learnt to live with the new reality of higher import duty, he said. Exporters are diversifying and with the Russian President's visit to India, industry can find new markets through negotiated trade deals.