The BSE Sensex posted its biggest fall in a month, ending down for a consecutive session and continuing to retreat from the record high in the previous session, as investors pared positions in blue-chips such as Reliance Industries.
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 later in the day could impact global markets.
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 about $3.5 billion.
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 Sensex managed to close 0.09 per cent higher. The broader 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.
Among blue-chips, RIL fell 0.9 per cent, while Housing Development Finance Corp lost one per cent.
ITC fell 0.3 per cent, while Tata Motors ended down 1.4 per cent. Larsen and Toubro declined one per cent, adding to Thursday's 0.8 per cent fall on continued worries about its order book, dealers said.
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
However, the government's exchange-traded fund with 10 exposure to 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.
