Indian shares fell 1 percent on Friday and posted their third straight session of declines, tracking a global sell-off on disappointment over the European Central Bank's (ECB) stimulus measures. The broader NSE index ended 1.05 percent lower, while the benchmark BSE index dropped 0.96 percent, recording their biggest single-day percentage fall since November 18. For the week, the BSE index lost 1.87 percent while the NSE fell 2 percent, snapping two straight weeks of gains.
The ECB cut its deposit rate deeper into negative territory and extended its asset buying by six months on Thursday. However, its rate cut of 0.10 percentage point, to -0.30 percent, was smaller than a 0.15 to 0.20 percentage point reduction many traders expected. The Indian rupee too hit a more than two-year low against the greenback at 67.01 per dollar on Friday.
"Concerns of a US interest rate hike, ECB's stimulus package and impact of rains in Chennai are impacting the market," said Alex Mathews, head of research at Geojit BNP Paribas. The BSE index was on track to record a decline of 1.6 percent for the week, while the NSE index headed for a drop of 1.62 percent. Losses were lead by bluechip stocks. Housing Development Finance Corp fell 1.7 percent, ITC declined 1.43 percent, and Reliance Industries dropped 1.2 percent. Bucking the trend, Sun Pharmaceutical Industries rose as much as 6.5 percent after the company won US FDA approval for generic Gleevec.