Sensex, Nifty fall for second day on profit-taking

Foreign investors sold index futures worth Rs 591 cr ($97.9 mn) and stock futures worth Rs 677 cr on Thursday, exchange data showed

The BSE Sensex and Nifty fell for a second straight session on Friday as profit-taking continued in blue-chips such as ICICI Bank after a string of records earlier this week, while foreign investor sales in equity derivatives also weighed.

Foreign investors sold index futures worth Rs 591 crore ($97.9 million) and stock futures worth Rs 677 crore on Thursday, exchange data showed.

That marked a rare day of selling, given that foreign investors have been largely buying cash shares this year, worth a total of $13 billion so far, thanks in part to easy monetary policies globally. The European Central Bank on Thursday went further, cutting interest rates and embarking on a trillion-euro asset-buying binge.

Still, when the US Federal Reserve removes its stimulus is seen as the most important factor. All eyes are thus now on US August payrolls data, due later in the day.

Some analysts said they expected the United States to maintain an easy stance, which could help keep a rally in Indian shares going, given the optimism about the domestic economy.

"Steady rise in Indian equities would continue, amid economic recovery, supportive global liquidity, and falling commodity prices," said Hemant Kanawala, head of equity at Kotak Life Insurance.

The benchmark BSE Sensex fell 0.22 per cent, or 59.23 points, to end at 27,026.70, down from a record high of 27,225.85 hit on Wednesday.

Still, the index managed its fourth consecutive weekly gain of 1.5 per cent.

The broader Nifty lost 0.11 per cent, or 9.10 points, to end at 8,086.85. It rose 1.7 per cent for the week.

Profit-taking hit blue-chips for a consecutive session, sending ICICI Bank down 1.6 per cent, while Housing Development Finance Corp ended down 2.3 per cent. Among other decliners, Tata Motors lost 1.4 per cent and Coal India ended down 2.3 per cent. Jaiprakash Associates Ltd lost 10.1 per cent, adding to Thursday's 17.6 per cent slump on continued speculation about whether promoters were reducing their stakes.