The results sparked doubts about the premise of a rally that has sent the Nifty up 7.6 per cent so far this year, already more than its 6.8 per cent rise in the whole of last year.
The gains this year have been premised not only on the prospect of the Bharatiya Janata Party winning the elections that would conclude by mid-May, but also on the prospect of a recovery in the domestic economy.
Inflation fears could also revive after the Meteorological Department on Thursday forecast the country would see below-average monsoon rainfall in 2014, raising the possibility of drought.
Buying by foreign investors since the start of February has supported shares so far. FII's were buyers for a fourth consecutive session on Wednesday, bringing their total this year to Rs. 29,800 crore.
The markets will be volatile and consolidate around the current levels till the time of election results.There would be stock-specific movements based on quarterly earnings. Overall if you are looking at a longer term on a 9 month to a year basis, we advise to have a portfolio of cyclical and domestic investment oriented stocks.
The BSE index closed 0.82 per cent lower at 22,688.07. The index had earlier risen to an all-time high of 22,939.31, having hit a record in each of the four trading sessions this week, though it ended with a mild 0.26 per cent gain for the week.
The Nifty closed 0.85 per cent down at 6,782.75. The index gained 0.1 per cent in the week, after earlier hitting a record at 6,869.85.
ICICI Bank fell 2.24 per cent despite posting a better-than-expected 15 percent rise in January-March net profit. Dealers say the bank's results were helped by a one-time foreign exchange gain estimated at Rs. 222 crore.
Shares in Maruti Suzuki India Ltd fell 1.3 per cent after posting a worse-than-expected 35 percent drop in January-March net profit.
Cairn India plunged 4.94 per cent after its net profit lagged some analysts' estimates, especially after adjusting for other income. ACC Ltd fell 2.73 per cent and Ambuja Cements India Ltd closed 4.43 per cent lower even as their earnings beat forecasts.
Alstom SA's Indian units surged after a report on Wednesday that General Electric Co was in talks to buy the struggling French turbine and train maker parent for about $13 billion.Alstom India Ltd gained 4.13 per cent, while Alstom T&D India Ltd jumped 5.87 per cent.