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The Sensex and Nifty fell on Friday, posting their first weekly loss in seven, as investors booked profits in recent outperformers after indices hit record highs, while caution prevailed ahead of US jobs data later on Friday. The Sensex closed down 0.4 per cent at 28,458 points. The index fell 0.8 per cent this week, after gaining for six weeks. The Nifty ended 0.3 per cent lower at 8,538 points, falling 0.6 per cent for the week.
U.S. non-farm payrolls were expected to have increased by 230,000 jobs last month after rising by 214,000 in October, leaving room for the Federal Reserve to hold interest rates near zero well into next year.
However, broader losses were capped as heavyweights such as Mahindra and Mahindra (MAHM.NS: Quote, Profile, Research) and ITC Ltd (ITC.NS: Quote, Profile, Research) rose while mining stocks like Sesa Sterlite (SESA.NS: Quote, Profile, Research) also gained tracking firm trends in global prices.
"Markets have no big trigger left. Government's decisions and even views in the parliament will drive markets. The good part is they (government) are good expectation managers. But markets are at all-time highs and valuation is a real concern," said Daljeet S Kohli, head of research at IndiaNivesh.
"We are cautiously optimistic," he added.
Technology stocks fell with Tata Consultancy Services down 2.2 percent ahead of the U.S. jobs data. Wipro (WIPR.NS: Quote, Profile, Research) closed down 2.3 percent while Infosys Ltd (INFY.NS: Quote, Profile, Research) ended 1.5 percent lower.
Recent outperformers such as oil explorers fell. Explorers had gained for the last couple of sessions after crude prices bounced back from a multi-year low.
Oil and Natural Gas Corp (ONGC.NS: Quote, Profile, Research) closed 1.5 percent lower after gaining 2.9 percent in the last two sessions. Cairn India Ltd (CAIL.NS: Quote, Profile, Research) closed down 0.9 percent.
Defensive stocks such as pharmaceutical companies also closed lower. Sun Pharmaceutical Industries (SUN.NS: Quote, Profile, Research) ended down 2.13 percent while Dr Reddy's Laboratories was down 2.3 percent.
However, among the gainers, ITC Ltd (ITC.NS: Quote, Profile, Research) gained 2.1 percent, adding to its 5.4 percent gain in the previous session on the back of reports that the government was rethinking a potential ban on the sale of loose cigarettes.
Mahindra and Mahindra gained 2.3 percent, up for the third straight session, on hopes of tax sops, especially for tractor makers, to help the rural economy.
Sesa Sterlite closed 1.9 percent higher on steady iron ore prices.
Redington India (REDI.NS: Quote, Profile, Research) closed up 5.4 percent after reports the company could lead Apple Inc's franchise model in India.
