The Sensex and Nifty ended lower on Friday, after jumping to record highs twice this week, as investors turned cautious ahead of inflation and IIP data and booked profits in recent outperformers.
The industrial production data (IIP) for March and April inflation data based on consumer price index (CPI) will be announced after market hours today.
Domestic sentiment was also hit due to weak global cues.
The broader NSE index closed down 21.5 points or 0.23 per cent at 9,400.90, but was up 1.24 per cent for the week.
The benchmark BSE index ended 62.83 points or 0.21 per cent lower at 30,188.15, but was up 1.10 per cent for the week.
Both indexes snapped four straight sessions of gains.
Among BSE sectoral indices, consumer durables index fell the most by 0.98 per cent, followed by banking 0.89 per cent, power 0.81 per cent and healthcare 0.66 per cent. On the other hand, IT index was up 1.16 per cent, realty 0.81 per cent, TECk 0.68 per cent and auto 0.12 per cent.
Top five Sensex gainers were Infosys (+2.12%), Hero MotoCorp (+2.11%), Cipla (+1.00%), Sun Pharma (+0.81%) and Tata Motors (+0.7%), while the major losers were Asian Paints (-3.04%), Axis Bank (-2.8%), ICICI Bank (-1.23%), Adani Ports (-1.2%) and HDFC (-0.96%).
Consumer inflation
Consumer price inflation (CPI) is expected to have eased to a three-month low of 3.49 per cent in April from 3.81 per cent the previous month, below the central bank's medium-term target of 4 per cent 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.
“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 Reserve Bank of India had said in April that it was "committed to bringing headline inflation closer to 4 per cent 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.
Meanwhile, FIIs bought shares net worth Rs 1,306.71 crore yesterday , as per the provisional figures issued by the stock exchanges.