Indian share prices fell 1.34 percent on Friday in volatile trade, snapping a three-day streak of record closes as funds and retail investors turned cautious and took profits, dealers said. They said software and automobile stocks came under selling pressure after some equity research firms downgraded those sectors.
The benchmark 30-share Sensex index fell 157.46 points to 11,589.44. Greasing the slide were unconfirmed reports that the stock market regulator was concerned about the recent big rise in share prices. "The markets were nervous on rumours that the regulator was checking on the sharp-run in recent days," said Manoj Kakaiya, dealer at brokerage ULJK Securities.
"Investors decided to book profits at these levels but the fundamentals remain strong and we should see a recovery next week," he said.
There was no immediate comment available from the regulator on the rumours.
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