Indian shares ended lower on Friday, marking their first weekly loss in three, as caution prevailed ahead of the US Federal Reserve meeting next week and a vote in Britain later this month about whether to leave the European Union. The BSE index fell 0.48 percent to 26,635.75, falling 0.77 percent for the week. The broader NSE index declined 0.41 percent to 8,170.05, down 0.62 percent this week. Global factors are likely to be the main drivers of Indian stock markets for the rest of the month, after they hit their highest levels since late October this week on hopes of an improving economy.
Fed officials meet next Tuesday and Wednesday, and the US central bank is expected to leave rates unchanged. "There are a lot of short positions in the market, people have gone short anticipating market volatility in the context of 'Brexit'," said V K Vijayakumar, chief market strategist, Geojit BNP Paribas Financial Services Ltd.
Among losers, Tata Motors Ltd dropped as much as 2.1 percent, after rising 4 percent over the previous six sessions on robust May sales. State Bank of India fell as much as 2.2 percent. Moody's Investors Service said on Friday India's top state-run banks would need more than double the capital the government planned to inject into them due to their weak asset quality and levels of profitability. But private sector lenders rose, with Yes Bank Ltd gaining as much as 2.7 percent.
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