Fed meet to determine market's trajectory in near term: Mythili Bhusnurmath

Mythili Bhusnurmath, Consulting Editor, ET Now, explains why the July 29 US Fed meet is going to be the most important short-term factor for markets. Excerpts:

ET Now: What do you think is most on market's mind — GST, MAT or global cues?

Mythili Bhusnurmath: The most important factor is going to be the Fed meet. In fact, July 29 is not too far away. All eyes will be on whether or not the Fed gives a clear hint on its likely course of action.

Mind you, it is only going to be a hint. The Fed never says anything in plain language, nor does any central bank for that matter.

But if we get a firmer hint on the timing of rate action — a clearer indication that September will be the time rather than December — it would really be a very key factor in determining a whole host of things, including the general market direction.

Then, of course, we have our own RBI monetary policy meet coming up in the first week of August. Factors like GST will be in sharp focus too.

But we must not forget that GST and MAT are more of medium- to longer-term factors. In the short term, the decider is certainly going to be the Fed meet followed by RBI's monetary policy statement.