RBI monetary policy, earnings trigger for next week: Udayan

The equity market saw a bit of a breather on Friday. Given the 400 points rally the Nifty saw in the past seven days, its eventual 40 point correction was nothing alarming, infact on the expected lines believes CNBC-TV18’s managing editor, Udayan Mukherjee.

Below is the edited transcript of Udayan's analysis of the market.
The market will just have to see whether this correction is the start of something a bit more ominous than just a routine pullback of what has been a significant rally over the last seven or eight sessions. Many of the large caps did not do very well, notably among them- Reliance, Hindustan Unilever (HUL), HCL Tech and Tata Consultancy Services (TCS) continued to do drift lower.
ICICI Bank perhaps rallied too much into its numbers. There was no positive surprise in those numbers and therefore the stock came off. JSPL was another stock, which reacted poorly to its results. JP Associates was down and other banks like State Bank of India (SBI) and IndusInd Bank did not do too badly.
The Nifty would have lost more ground had it not been for Bharti, which rallied five percent today, perhaps taking a leaf out Idea’s very strong numbers. Maruti was up five percent deservedly after what looked like a very strong set of numbers. Larsen and Toubro (L&T) also had a fairly stable session of trade.
Outside the index some result reactions from names like Idea and LIC Housing both got good reactions from the street, as did Vijaya Bank though the operating numbers were not that strong.
On the other hand, Siemens came off sharply after what looked like yet another disappointing set. Delta Corp fell after reporting a loss and we had some losing performances from stocks like Unitech and Housing Development and Infrastructure (HDIL) in real estate, Reliance Capital, Crompton Greaves and Canara Bank. Even Jet Airways corrected today.
So, a mixed day of trade, not a great weekly close, though for the week the Nifty was up 1.5 percent. Now, as the market wades into the earnings season next week with some big ones slated in the first part of the week and the Reserve Bank of India (RBI) policy which is next Friday, whether the market can get back on its feet and continue with the rally.