Sensex hit by profit-taking ahead of earnings, inflation data

By Abhishek Vishnoi

MUMBAI (Reuters) - The BSE Sensex fell on Friday, retreating from record highs hit in the previous session as blue chips such as Reliance Industries declined ahead of quarterly earnings and inflation data due next week.

Sentiment was also hit by a slide in global shares as steep falls in U.S. technology and biotechnology stocks spread to other sectors and regions.

After a week in which both the Sensex and Nifty hit record highs, investors are bracing for consumer inflation data due on Tuesday, the same day that Infosys is due to post quarterly earnings.

The events will provide a snapshot on the Indian economy, which many analysts say continues to struggle. Data on Friday showed the trade deficit widening to $10.51 billion in March from $8.13 billion in February on lower exports.

 

"The firm trend in the Sensex continued. The broad theme remained the same with domestic cyclicals outperforming the IT and FMCG sectors," said Dipen Shah, head of private client group research at Kotak Securities.

The benchmark BSE Sensex fell 0.38 percent, or 86.37 points, to end at 22,628.96. The index rose 1.2 percent for the week, marking its third consecutive weekly gain.

The broader Nifty lost 0.3 percent, or 20.10 points, to end at 6,776.30, but gained 1.22 percent for the week.

Indian equity, forex and debt markets will be closed on Monday for a local holiday.

Among blue-chips, Reliance Industries fell 1.6 percent, while Larsen & Toubro ended 1.2 percent lower.

Bank shares fell 0.8 percent after a central bank panel recommended a slew of measures, including potentially changing how lending rates are set for the sector, raising worries about overall profitability.

ICICI Bank fell 0.9 percent, while Axis Bank ended 0.5 percent lower.

Indusind Bank slid 4.3 percent on caution ahead of its March-quarter earnings on Wednesday.

State Bank of India lost 1.7 percent and Bank of Baroda fell 1.2 percent.

Tata Motors fell 1.7 percent after making an all-time high of 437.80 rupees after its unit Jaguar Land Rover's retail volumes for March came marginally below some analysts' estimates at 55,183 units.

Adani Enterprises Ltd slumped 6.8 percent as investors chose to book profits after the stock rose 22.9 percent on Thursday, marking its biggest single day percentage gain ever.

However among stocks that gained, Piramal Enterprises Ltd rose 6.2 percent, adding to Thursday's 2.9 percent gain after Britain's Vodafone said on Friday it had taken full ownership of Vodafone India by buying the 11 percent it did not already own from the company.

Infosys gained 1.1 percent ahead of its March-quarter earnings on Tuesday, while Tata Consultancy Services rose 1.8 percent.

Also, Infosys said on Friday the company had started a search for chief executive S.D. Shibulal's successor and appointed Egon Zehnder to assist the nominations committee in identifying external candidates.

(Editing by Anand Basu)