Sensex falls around 250 points on Subbarao's comments

Reuters Market Eye - The BSE Sensex falls around 1.25 percent and the Nifty is down 1.3 percent. Lenders fall after Reserve Bank of India Governor Duvvuri Subbarao said on Thursday retail inflation is still high, and several upside risks to inflation remain.

HDFC Bank down 2.9 percent, while ICICI bank Ltd falls 0.44 percent.

Recent outperformers such as Sun Pharmaceutical Industries Ltd and Mahindra & Mahindra fall on profit-booking after making their respective all-time highs on Thursday. Sun Pharma falls 1.6 percent while M&M is down 3 percent.

DLF Ltd falls 3 percent after India's largest real estate developer posted its first-ever quarterly net loss, weighed down by slowing home sales in a sluggish economy.