All eyes on RBI policy, US election for now By DIPEN SHAH, KOTAK SECURITIES The stock market ended the week on a weak note with the benchmarks falling by 0.7% on Friday. Weak global cues impacted sentiments. There are concerns about Spain after it has desisted from making a request for additional funding support from the ECB. US markets also continue to trade undecided before the Presidential elections on November 6. In India, the weaker-than-expected volume growth for 2Q by HUL pressured the markets. On the other hand, ICICI Bank reported above-expected numbers. For the week, benchmark indices ended marginally lower. Absence of any major announcements from the government kept the mood subdued. The F&O expiry also had an impact on the market performance for the week. In-line or better-than-expected results were met with a muted response with some such stocks ending lower post – results, indicating scant interest at the current levels. We believe the market is awaiting the RBI decision on October 30 and on the global front, the elections for the US Presidency. More importantly, there have been no announcements on further reforms and some important decisions on issues like NIB, land acquisition and real estate regulator have been pushed forward. These are points of concern. Markets are pricing some of the reforms and if these do not come through, there will be disappointment, we believe.