Indian equity market has remained rangebound for a while now. Mild uptick followed by some profit-booking has kept the benchmark indices flat as investors wait for a trigger that can give them some sense of direction.
Outcome of the Uttar Pradesh election is an event people are keenly waiting for as it will give some idea on whether the policies of BJP will see a continuation and what one could expect in the 2019 general elections.
Though the exit polls on Thursday declared BJP to be the probable winner in UP, the market remained unperturbed in today's trading session, says UR Bhat, Director, Dalton Capital Advisor.
In an interview with CNBC-TV18, Bhat said that going ahead the US Fed meet and roll-out of the goods and services tax (GST) will act as a catalyst for the market.
He said that the market has already factored in a rate hike from the US Fed but the commentary on how hawkish the institute is going to be will give direction to the market.
On GST, he said that the tax reform might virtually act like another demonetisation because there will be a lot of disruption in the short-term with respect to compliance and adaptation.
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