"Now that the budget is over the market will come back to basics," said Gaurav Dua, head of research at Sharekhan, adding traders and investors would be looking more closely at valuations.

The BSE index is still up 40 per cent in 2009 after an almost 50 per cent rally in the June quarter.

"Markets are going to be tentative next week on account of monsoons, quarterly earnings, global cues and most important foreign fund flows," said Arun Kejriwal, director of research firm KRIS.

Farm Minister Sharad Pawar told parliament on Friday the poor monsoon rains in northern parts of India were a serious problem.

Rains have been 8 per cent below normal in early July, reviving after the driest June in 83 years, but water in the main reservoirs has more than halved, putting at risk even winter-sown oilseeds and wheat.

Higher than expected industrial output in May also failed to move the market, with traders shrugging it off as historical data. Output rose 2.7 per cent in May, above a Reuters poll forecast of 1.4 per cent.

Energy giant Reliance Industries, which led the index losers, fell nearly 4 per cent to Rs 1,778.40. The stock has fallen 12.3 per cent this week, the second steepest weekly slide this year.

Infosys firmed 3 per cent to Rs 1,726.50 and spurred other outsourcers. Bigger rival Tata Consultancy Services rose 1.6 per cent to Rs 394.65, while No. 3 outsourcer Wipro Ltd gained 3.4 per cent to Rs 384.70.

... contd.