Sensex retreats from record high, falls 240 pts

The BSE Sensex fell a little more than one per cent on Friday to post their biggest decline in three weeks, retreating from a record close in the prior session as rate-sensitive stocks dropped after the Reserve Bank of India governor's strong warning on inflation.

The Sensex gained 0.33 per cent this week, while the Nifty rose 0.81 per cent. The Sensex closed down 240.10 pointsm or 1.12 per cent, at 21,133.56, while the broader Nifty closed lower 78.90 points, or 1.24 per cent, at 6,266.75.

Both indexes posted their biggest decline since January 2. Losses also tracked lower Asian shares, which hit their 4-1/2 month low, as disappointing Chinese manufacturing data raised concerns over the economy. Shares in State Bank of India closed lower 2.24 per cent, while ICICI Bank ended down 1.97 per cent.