Reuters/Mumbai

Indian shares fell yesterday, retreating from record highs hit in the previous session as blue chips such as Reliance Industries declined ahead of quarterly earnings and inflation data due next week.

Sentiment was also hit by a slide in global shares as steep falls in US technology and biotechnology stocks spread to other sectors and regions.

After a week in which both the BSE and NSE indexes hit record highs, investors are bracing for consumer inflation data due on Tuesday, the same day that Infosys is due to post quarterly earnings.

The benchmark BSE index fell 0.38%, or 86.37 points, to end at 22,628.96. The index rose 1.2% for the week, marking its third consecutive weekly gain. The broader NSE index lost 0.3%, or 20.10 points, to end at 6,776.30, but gained 1.22% for the week.

Indian equity, forex and debt markets will be closed on Monday for a local holiday.

Infosys gained 1.1% ahead of its March-quarter earnings on Tuesday, while Tata Consultancy Services rose 1.8%.

Also, Infosys said the company had started a search for chief executive SD Shibulal’s successor and appointed Egon Zehnder to assist the nominations committee in identifying external candidates.

Meanwhile the rupee continued to falter, retreating from an eight-month high hit last week, to post its second consecutive weekly fall after data showed the trade deficit widened to a five-month high in March.

The data - showing the trade deficit widening to $10.5bn from $8.13bn in February on the back of falling exports - revived concerns about the current account deficit after a recent sharp narrowing.

Investors will now be closely eyeing the consumer inflation data due on Tuesday, as well as the start of corporate earnings results next week, for a better snapshot of the domestic economy.

The partially convertible rupee closed at 60.1750/1850 per dollar compared with 60.07/08 on Thursday.

For the week the rupee lost 0.2%, continuing to retreat after hitting an eight-month high of 59.5950 on April 2.

Although foreign flows have helped sustain gains in the rupee and shares, Asia’s third-largest economy is seen vulnerable to any shift in capital flows.