The Sensex dropped by 86.37 points, or 0.38 per cent, to close at 22,628.96. Yesterday the index had zoomed to all time high of 22,792.49 in day trade.
The broad-based NSE Nifty of the National Stock Exchange lost 20.10 points, or 0.30 per cent, to 6,776.30. It touched a low of 6,743.15 intra-day.
Cautious investors indulged in profit booking at higher levels ahead of industrial production data to be released later in the day, brokers said. Investors are also awaiting for inflation figure and quarterly earnings from next week for further direction, they added.
The market was also in a cautious mood following a long week-end as market will be closed on Monday for 'Ambedkar Jayanti'.
A weak trend in the Asian region and lower opening in Europe following a steep fall in technology stocks at US markets overnight, further influenced the sentiment.
Reliance Industries dropped by 1.65 per cent before the earnings, leading the oil and gas sector index to suffer the most by 1.28 per cent.
The auto sector index was the second worst performer by losing 1.20 per cent following reports of fall in car sales for the second consecutive fiscal in 2013-14.
In 30-BSE index components, 19 stocks declined led by State Bank of India (SBI), Maruti Suzuki, Mahindra and Mahindra, Larsen and Toubro, Bajaj Auto and Hero MotoCorp.
HDFC Ltd, Gail India, ICICI Bank and Hindustan Unilver also declined.
Dipen Shah, Head- Private Client Group Research, Kotak Securities:
Global markets came off during the week. Among them, Nikkei was a major loser for the week down 5%. In fact, the Nikkei posted its biggest weekly fall since the March 2011 nuclear disaster, as the yen gained against the USD and also as the US markets retreated. The Nasdaq also ended weak on profit taking especially in the high-flying internet and biotech stocks.
Coming to the Indian markets, the firm trend in the Sensex continued as it closed 1.1% up for the week. FIIs remained strong buyers of Indian equities. The broad theme remained the same with domestic cyclicals outperforming the IT and FMCG sectors. Among the stocks, the Adani group stocks ended with strong gains. The trade data for March was worse than expected, with imports rising fast on a MoM basis. The rupee weakened after remaining in a tight band for the past few days, largely due to the weak global markets and the weak trade data.
The Sensex would start the next week (truncated by two holidays) with Infosys numbers followed by those of TCS and HCL later into the week. Apart from this, there would be inflation data.
BSE Sensex retreats from record highs, Reliance Industries shares drop
(Reuters) BSE Sensex fell on Friday, retreating from record highs hit in the previous session as blue chips such as Reliance Industries (RIL) shares retreated ahead of quarterly earnings and inflation data due next week.
Sentiment was also hit by a slide in global shares as steep falls in U.S. technology and biotechnology stocks spread to other sectors and regions.
Reliance Industries provisionally fell 1.8 percent, while Larsen & Toubro ended lower 1.4 percent.
The benchmark BSE index provisionally closed 0.46 percent lower, while the broader NSE Nifty index lost 0.4 percent.