Caution is starting to set in after a record-setting rally as India is set to kick off a five-week election process on Monday, while US jobs monthly data which came out okay. But the markets in US reacted negatively could impact global markets.
Profit-taking is expected to continue weighing on Indian equities after the Sensex rose about 11 per cent since mid-Feb.Hopes for a recovery in the economy have also played a role. Foreign investors have been heavy buyers of Indian shares, adding $119.11 million worth of cash shares on Thursday, and bringing the total since February end to nearly $3.5 billion.Some caution, profit-taking is obvious ahead of key events, but overall the trend still remains on the upside.
The Sensex fell 0.66 per cent, or 149.57 points, to end at 22,359.50, marking its biggest single day fall since March 3.For the week, however, the BSE managed to close 0.09 per cent higher.
The Nifty lost 0.62 per cent, or 41.75 points, to end at 6,694.35, closing below the psychologically important 6,700 level. It ended 0.02 per cent lower for the week.Reliance Industries fell 0.9 per cent, while Housing Development Finance Corp lost 1 per cent.
ITC fell 0.3 per cent while Tata Motors ended down 1.4 per cent.Larsen and Toubro declined 1 per cent, adding to Thursday's 0.8 per cent fall on continued worries about its order book.
Software services exporters fell on caution ahead of their quarterly earnings. Infosys, which kicks off the January-March earnings season with results due on April 15, fell 0.7 per cent.
Tata Consultancy Services lost 1.3 per cent, while HCL Technologies ended down 1.9 per cent
The government's exchange-traded fund with exposure to 10 state-run companies - or the Central Public Sector Enterprises ETF, ended up 10.9 per cent from its allotment price of Rs. 17.45 per unit in their public debut.