Sensex Falls 63 Points, Nifty Settles Above 9,400; Yes Bank Plunges 6%

Indian shares ended lower on Friday after hitting record highs in the previous two sessions, as investors turned cautious ahead of inflation data and booked profits in recent outperformers. The BSE benchmark Sensex fell 62.83 points to settle at 30,188.15, while the Nifty settled 14.05 points lower at 9,408.35 amid profit booking in banking shares. Shares of private sector lender Yes Bank fell 5.97 per cent to be the top loser in the Nifty.

Consumer price inflation (CPI) is expected to have eased to a three-month low of 3.49 percent in April from 3.81 percent the previous month, below the central bank's medium-term target of 4 percent due to lower base effects and a fall in the cost of pulses, cereals and perishable goods.

"There is plenty of interest in today's inflation and production data, due post-market hours," DBS Group Research said in a report.

The Reserve Bank of India had said in April that it was "committed to bringing headline inflation closer to 4 percent on a durable basis and in a calibrated manner."

A lower rate of inflation would likely lower the chances of an interest rate hike, potentially adding more fuel to the ongoing rally in equities.

Both the broader NSE Nifty and the benchmark BSE Sensex hit record highs in the previous two sessions, and were up more than one percent for the week. The indices are headed for a second week of gains in three.

"Though it has pared gains today, the market is still performing at its best," said Deven Choksey, managing director, K.R Choksey Investment Managers.

The broader Nifty fell 0.15 percent to close at 9,408.35. The index is up 1.27 percent for the week.

The benchmark Sensex settled 0.20 percent lower at 30,188.15.

IT shares like, Infosys, Tech Mahindra, HCL Tech were among the major gainers in the Nifty today rising between 1-2.2 per cent. The Nifty IT, NSE's sub-index for IT shares rose 1.18 per cent today. Hero MotoCorp, which reported its earnings yesterday was the the top gainer in Nifty with 2.3 per cent gains.

Meanwhile, Glenmark Pharmaceuticals slumped 16 percent after the company's fourth-quarter profit missed analysts' estimates. (With agency inputs)