Mumbai: Equity benchmarks Sensex and Nifty hit new life-time highs on Friday but retreated on profit-booking in bluechips, including ICICI Bank, Wipro and Tata Motors, to log their first drop in nine sessions.
The BSE Sensex ended down 145.10 points, or 0.55 per cent, to end at 26,126.75 after surging to 26,300.17 intra day.
On Thursday, the 30-share bluechip benchmark had ended at its all-time closing high of 26,271.85 and had also hit intra-day high of 26,292.66. The NSE Nifty in early trade hit record 7,840.9 but ended below the key 7,800-mark to close at 7,790.45, down 40.15 points or 0.51 per cent. Its previous all-time high of 7,835.65 was hit on Thursday.
Marked losses in counters like RIL, SBI, HDFC Bank and Infosys also weighed on the market sentiment.
Selling was seen mostly across-the-board as 10 out of 12 BSE sectoral indices closed in the red while only shares from healthcare and FMCG segments logged gains on defensive buying.
"The Indian markets saw a day of decline after running up rapidly in the past few sessions," said Kiran Kumar Kavikondala, Director & CEO, WealthRays Securities. The mood seems to be cautious ahead of the expiry of Indian derivatives contract on July 31, traders said, adding that persisting fears about a spike in oil price on Middle East and Ukraine violence continues to spook investors.
Rupee edges higher
The rupee on Friday edged up by two paise to end at 60.10 against the American unit on dollar selling by exporters, helping the local currency log its first weekly rise in three.
Weakness in local stocks, a firm dollar overseas and some dollar demand from importers, mainly oil refiners, also kept the rupee under check on Friday, said forex traders.
The rupee resumed at overnight closing level of 60.12 at Interbank Foreign Exchange (Forex) market and was locked in a small range of 60.07 and 60.18 before concluding at 60.10 against the dollar, a net rise of 2 paise or 0.03 per cent.
Pramit Brahmbhatt, Veracity Group CEO, said: "Rupee continued to trade in a small range and ended nearly flat for the day. The pair is likely to trade range-bound as investors are trading cautiously and are waiting for the RBI's credit policy scheduled for 5th August. Next week, dollar demand from oil importers will keep rupee under pressure."