Domestic stock markets opened on a better note with the 30-scrip BSE Sensex touching the day's high of 27,178.80 points in early trade. It later slipped below the 27,000-mark and touched day's low of 26,920.56 before ending at 27,026.70, registering a drop of 59.23 points or 0.22 per cent.
Among Sensex 30 components, 17 stocks ended in the negative zone, while 13 closed higher.
On Thursday, the Sensex had lost 54.01 points. It had hit life high of 27,225.85 and closed at record peak of 27,139.94 on Wednesday.
Brokers said emergence of selling in stocks that had recently witnessed gains and a weak trend in global markets, led to the fall in major indices today.
The 50-share Nifty of the National Stock Exchange also shed 9.10 points, or 0.11 per cent, to end at 8,086.85. During the session, the Nifty shuttled between 8,122.70 and 8,049.85. Yesterday, it had fallen by 18.65 points.
Among the sectoral indices, the BSE Auto index dropped 0.65 per cent, followed by FMCG 0.32 per cent and Banking index lost 0.30 per cent.
On the other hand, the BSE Realty index surged 1.15 per cent, followed by Capital Goods index 0.86 per cent, Metal index 0.69 per cent and IT index 0.51 per cent, among others.
The BSE Small-cap index advanced 1.25 per cent and Mid-cap index added 0.56 per cent, indicating continued retail investor interest.
Asian shares and the euro slipped Friday after European Central Bank unveiled fresh measures. Eyes are now on the release of US jobs data later on Friday, which could have a bearing on Fed policy.
Europe's main stock markets also dipped in late morning trades today after data showed the 18-nation eurozone economy stagnated in the second quarter with zero growth.
Indian shares fall for second day on profit-taking, derivative sales
(Reuters) Indian shares fell for a second straight session on Friday as profit-taking continued in blue-chips such as ICICI Bank after a string of records earlier this week, while foreign investor sales in equity derivatives also weighed.
Overseas investors sold index futures worth 5.91 billion rupees ($97.9 million) and stock futures worth 6.77 billion rupees on Thursday, exchange data showed.
That marked a rare day of selling given that foreign investors have been largely buying cash shares this year, worth a total of over $13 billion so far, thanks in part to easy monetary policies globally.
The European Central Bank on Thursday went further, cutting interest rates and embarking on a trillion-euro asset-buying binge.
Still, when the Federal Reserve removes its stimulus is seen as the most important factor. All eyes are thus now on U.S. August payrolls data due later in the day.
Some analysts said they expected the United States to maintain an easy stance, which could help keep a rally in Indian shares going, given the optimism about the domestic economy.
"Steady rise in Indian equities would continue amid economic recovery, supportive global liquidity, and falling commodity prices," said Hemant Kanawala, head of equity at Kotak Life Insurance.
The benchmark BSE index fell 0.22 percent, or 59.23 points, to end at 27,026.70, down from a record high of 27,225.85 hit on Wednesday.
Still, the index managed its fourth consecutive weekly gain of 1.5 percent.
The broader NSE index lost 0.11 percent, or 9.10 points, to end at 8,086.85. It rose 1.7 percent for the week.
Profit-taking hit blue-chips for a second consecutive session, sending ICICI Bank down 1.6 percent, while Housing Development Finance Corp ended down 2.3 percent.
Among other decliners, Tata Motors lost 1.4 percent, while Coal India ended down 2.3 percent.
Jaiprakash Associates Ltd lost 10.1 percent, adding to Thursday's 17.6 percent slump on continued speculation about whether promoters were reducing their stakes.
The company on Thursday clarified in a statement that one of its promoters had reduced stake in the company to 28.30 percent from 29.75 percent.
Broader losses were however limited as midcap shares gained with the NSE midcap index ending 0.3 percent higher after marking its third consecutive all-time high.
Lloyd Electric and Engineering surged 8.9 percent on attractive valuations relative to rivals.
The consumer appliance maker trades at 6 times of its one-year forward earnings. That compares to 24 times of rival Voltas, Thomson Reuters data shows.
Software stocks gained on continued hopes of better business in the United States and Europe after recent positive macro data such as U.S. ISM manufacturing.
Infosys rose 0.6 percent, while Tata Consultancy Services gained 0.5 percent.