Indian shares retreat from record highs on profit taking

MUMBAI, July 25 (Reuters): India's broader NSE index fell on Friday after hitting a record high for a third straight day as investors took profits in blue-chips such as ICICI Bank , while IT outsourcing firms declined after Wipro's US dollar revenue growth lagged rivals.
The stock markets also tracked global shares lower after a week of largely reassuring economic signals but rising political tensions. Sentiment was also hit as foreign portfolio investors sold 2.80 billion rupees of Indian index futures and options contracts on Thursday. In the near term, the markets would be driven by the ongoing earnings season, with Larsen & Toubro, ICICI Bank and Maruti Suzuki India reporting results in the coming week and the central bank's policy review on Aug. 5.
"Risk reward has become slightly unfavourable. Correction is part of the course. But, it's still a buy-on-dips market," said Jagannadham Thunuguntla, chief strategist and head of research at brokerage SMC Global Securities. The broader NSE index fell 0.51 per cent, or 40.15 points, to end at 7,790.45. Still, the index rose 1.65 per cent for the week, marking its second consecutive weekly gain. The NSE earlier rose 0.13 per cent to hit its third consecutive record high at 7,840.95.
The benchmark BSE index lost 0.55 per cent, or 145.10 points, to end at 26,126.75, while rising 1.9 per cent for the week. It earlier rose 0.1 per cent to hit its second straight all-time high at 26,300.17. A bout of profit-taking hit Indian shares on Friday, sending ICICI Bank Ltd down 2 per cent after the stock had gained 12.1 per cent over the past eight sessions, while Hindalco Industries Ltd fell 3.1 per cent on profit-taking after gaining in the last three sessions.