Reuters Market Eye - The BSE Sensex and the Nifty fall around 0.7 percent. Ambuja Cements slumps as much as 15 percent after Holcim said on Wednesday that it would raise stake in the company in a restructuring of its operations in India. Shares in ACC Ltd fall 4 percent.
Hindustan Unilever falls 3.3 percent on profit-taking a day ahead of its June-quarter earnings, after touching an all-time high of 725 rupees on Wednesday.
Asian stocks retreated from seven-week highs on Thursday as Wall Street buckled under profit-taking pressure, while upbeat U.S. economic news helped the dollar snap a three-day slide.
Foreign institutional investors sold 4.04 billion rupees of cash shares on Wednesday, exchange data shows.