MUMBAI, Jan 17 (Reuters): Indian shares fell nearly 1 per cent on Friday after Tata Consultancy Services slumped as its quarterly profit adjusted for other income lagged expectations, sparking some profit-taking in recently outperforming software services exporters.
Software exporters accounted for most losses in the BSE index on Friday. The BSE Infotech index fell 2.6 per cent while Tata Consultancy Services slumped 5.8 per cent, the most in a day since October 2011.
Traders say fading December-quarter earnings optimism alongside a factored view of stable rates by the central bank at its Jan. 28 meeting after headline inflation fell to five-month lows, might induce some investors to lock in profits.
Institutional flows in cash shares as well as index futures paint a picture of indecision from overseas investors, which may also weigh on sentiment, dealers add.
"Nifty (NSE index) continues to trade in a broad range of 6,000 and 6,400. So on the higher end of the range, we would see profit-booking, and on the lower end of the range buying interest will come in," said Milan Bavishi, head of research at Inventure Growth and Securities.
The benchmark BSE index fell 0.95 per cent, or 201.56 points, to end at 21,063.62, retreating for a second consecutive day from its highest level since Dec.
The broader NSE index lost 0.91 per cent, or 57.25 points, to end at 6,261.65, closing below the psychologically important 6,300 level.
Both the indexes, however, notched up a weekly gain of nearly 1.5 per cent, their first in three weeks, helped by a rally in rate-sensitive stocks ahead of inflation data.
Among other IT stocks, Wipro Ltd fell 3.3 per cent ahead of its results later in the day, HCL Technologies Ltd fell 0.8 per cent and Tech Mahindra Ltd ended 4.9 per cent lower.
Mobile carriers slumped for a second day on concerns over possible high bidding prices at a spectrum auction next month after eight companies applied to bid, signalling much stronger competition than expected.
