Sensex snaps 4-day winning streak on profit-taking

Indian shares fell today, snapping a four-day winning streak, led by declines in lenders such as ICICI Bank on profit-taking, after recent steep gains on rate-cut hopes were seen as overdone, ahead of the central bank's annual policy review next week.

Traders said a rise of about 6.4 per cent in the benchmark index in the last two weeks as of Thursday's close showed the market had already discounted a rate cut and current levels were widely used to lighten positions ahead of the Reserve Bank of India's policy review on May 3.

Traders are optimistic that the recent slide in gold and oil prices will help bring the current account deficit down, thereby providing more room for RBI to cut rates to help stoke GDP growth. They also expect analysts to raise their FY14 earnings estimates.

The Nifty is expected to move in the range of 5,750-5,950 ahead of the next trigger which is most likely to be RBI policy, added Mahajan. The benchmark BSE index fell 0.62 per cent or 120.13 points, to end at 19,286.72, reverting from the highest close in more than a month on Thursday, while gaining 1.4 per cent for the week. The broader NSE index declined 0.8 per cent, or 44.85 points, to end at 5,871.45, while gaining 1.5 per cent for the week.

ICICI Bank ended 2.8 per cent down on profit-taking after posting a 21 per cent rise in fourth-quarter net profit, in line with estimates, led by higher loan growth.

State Bank of India fell two per cent on worries that a rate-cut by the RBI on May 3 was already discounted at current valuations, dealers said. Siemens India Ltd shares fell 3.5 per cent after it said its Jan-March net profit declined 89.9 per cent.