Sensex falls tracking regional markets; Yes Bank drags

REUTERS - Indian shares fell on Friday, tracking weak regional equity markets, as investors booked profits following reports of a nuclear test in North Korea and amid uncertainty over the European Central Bank's (ECB) future policy steps.

Asian markets fell after North Korea said it had conducted its fifth nuclear test, hours after seismic monitors detected a blast near the reclusive state's nuclear test site.

Global market sentiment took a hit after ECB President Mario Draghi said on Thursday that the central bank was looking at options to continue its money-printing programme, but maintained the March end-date for asset purchases.

Investors back home also booked profits after shares closed at their highest in 18 months on Thursday as foreign institutional investors bought shares worth $6.43 billion so far this year.

"North Korea news is having some bit of implication on our markets but its not causing any immediate selloff. Given the higher levels at which Indian markets were trading, it was mouth-watering to take some money off the table," said Gaurang Shah, vice president, Geojit BNP Paribas Financial Services.

The benchmark BSE Sensex was 0.80 percent lower at 28,811.96 as of 0519 GMT, and was set for a weekly gain of about 1 percent.

The broader NSE Nifty was down 0.79 percent at 8,881.32 but was set for a gain of 0.77 percent for the week.

Private sector lender Yes Bank Ltd fell 3.7 percent, extending its losses from Thursday, after it deferred an up to $1 billion share sale to institutions.

Steel Authority of India dropped 5.8 percent after the state-owned steelmaker said on Thursday that its June-quarter net loss widened to 5.36 billion rupees.

Among the gainers, Motherson Sumi Systems Ltd rose 1.6 percent after the car parts maker launched on Thursday a share sale to institutions worth up to 20 billion rupees ($300.62 million).

Crompton Greaves Consumer Electricals gained about 1 percent after the Reserve Bank of India (RBI) raised the FII limit in the company to up to 100 percent.

($1 = 66.5300 Indian rupees)

(Reporting by Aastha Agnihotri in Bengaluru; Editing by Amrutha Gayathri)