Sensex marks biggest single day fall in a month ahead of elections

By Abhishek Vishnoi

MUMBAI (Reuters) - The BSE Sensex posted its biggest fall in a month, ending down for a second consecutive session and continuing to retreat from the record high hit 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 U.S. jobs monthly data later in the day could impact global markets.

Profit-taking is expected to continue weighing on Indian equities after the Sensex rose about 11 percent since mid-February on hopes main opposition Bhartiya Janata Party, seen as more business-friendly, would come to power.

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 nearly $3.5 billion.

"Some caution, profit-taking is obvious ahead of key events, but overall the trend still remains on the upside," said G Chokkalingam, founder of research and fund advisory company Equinomics.

The benchmark Sensex fell 0.66 percent, 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 percent higher.

The broader Nifty lost 0.62 percent, or 41.75 points, to end at 6,694.35, closing below the psychologically important 6,700 level. It ended 0.02 percent lower for the week.

Among blue chips, Reliance Industries Ltd fell 0.9 percent, while Housing Development Finance Corp lost 1 percent.

ITC fell 0.3 percent while Tata Motors Ltd ended down 1.4 percent.

Larsen and Toubro Ltd declined 1 percent, adding to Thursday's 0.8 percent fall on continued worries about its order book, dealers said.

Software services exporters fell on caution ahead of their quarterly earnings. Infosys Ltd , which kicks off the January-March earnings season with results due on April 15, fell 0.7 percent.

Tata Consultancy Services Ltd lost 1.3 percent, while HCL Technologies Ltd ended down 1.9 percent

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 percent from its allotment price of 17.45 rupees per unit in their public debut.

(Editing by Anand Basu)