Indian Shares Retreat from Record

The BSE Sensex closed 420 points lower at 62,870 on Friday, halting an eight-session rally and easing from the record-high hit last session as investors took profits ahead of the US jobs report after the closing bell.

Indian equities were also pressured by crude oil prices holding their gains for the week, driving import inflation higher and hampering demand for Mumbai’s heavyweight auto manufacturers.

Mahindra & Mahindra led the losses in the sector with a 2% drop, and Hero Moto and Maruti Suzuki followed with 1.5% declines.

Meantime, the Reserve Bank of India is set to revise downward the country's GDP growth for FY 2023 to between 6.5 to 7%, from currently at 7%, amid softening exports and an expected global slowdown next year.

On the policy front, economist polls show that the central bank is expected to raise its key rate by 10bps next week, as the RBI’s bulletin signaled expectations that inflation was slowing.

Still, the benchmark index ended the week 1% higher.