MUMBAI (Reuters) - The broader Nifty fell on Friday after hitting a record high for a third straight day as investors took profits in blue-chips such as ICICI Bank(ICBK.NS), while IT outsourcing firms declined after Wipro's(WIPR.NS) U.S. dollar revenue growth lagged rivals.
Tata Motors (TAMO.NS) slumped the most in nearly six months after unit Jaguar Land Rover (JLR) cut prices of three models in China in response to a probe in the auto industry.
The stock markets also tracked global shares, lower after a week of largely reassuring economic signals but rising political tensions.Sentiment was also hit as foreign portfolio investors sold 2.80 billion rupees of Indian index futures and options contracts on Thursday.
In the near term, the markets would be driven by the ongoing earnings season, with Larsen & Toubro (LART.NS), ICICI Bank and Maruti Suzuki India (MRTI.NS) reporting results in the coming week and the Reserve Bank of India's policy review on Aug. 5.
"Risk reward has become slightly unfavourable. Correction is part of the course. But, it's still a buy-on-dips market," said Jagannadham Thunuguntla, chief strategist and head of research at brokerage SMC Global Securities.
The broader Nifty fell 0.51 percent, or 40.15 points, to end at 7,790.45.
Still, the index rose 1.65 percent for the week, marking its second consecutive weekly gain. The Nifty earlier rose 0.13 percent to hit its third consecutive record high at 7,840.95.
The benchmark BSE Sensex lost 0.55 percent, or 145.10 points, to end at 26,126.75, while rising 1.9 percent for the week.
It earlier rose 0.1 percent to hit its second straight all-time high at 26,300.17.
Tata Motors (TAMO.NS) shares slumped 5 percent on Friday, marking its biggest single day fall since Jan. 27 2014 after the JLR price cuts in China raised concerns about margins in a key market.
A bout of profit-taking hit Indian shares on Friday, sending ICICI Bank Ltd down 2 percent after the stock had gained 12.1 percent over the past eight sessions, while Hindalco Industries Ltd (HALC.NS) fell 3.1 percent on profit-taking after gaining in the last three sessions.
Meanwhile Wipro Ltd fell 4.5 percent after the software services exporter's U.S. dollar revenue growth in June-quarter lagged its larger rivals.
Biocon Ltd (BION.NS) slumped 7.3 percent after June-quarter earnings lagged some analysts' estimates.
Motherson Sumi Systems Ltd (MOSS.NS) fell 1 percent after Bank of America Merrill Lynch downgraded the stock, citing demanding valuations.
However, defensive stocks such as consumer and healthcare gained on portfolio de-risking.
Additional reporting by Indulal PM; Editing by Anupama Dwivedi