Update: Sensex, Nifty fall 1.6 per cent as banks, Coal India slump

The BSE Sensex and Nifty fell more than 1.6 per cent on Friday after hitting a record high earlier for a seventh session in eight, as ICICI Bank and Bank of Baroda posted disappointing results while Coal India fell on the government's discounted stake sale.

The National Stock Exchange Nifty closed 1.6 per cent, or 143.45 points, lower to 8,808.90, snapping ten consecutive sessions of gains to post its biggest daily fall since a 3 per cent fall on January 6 in the midst of an emerging market sell-off.

Still, for the month, the index gained 6.8 per cent, its best monthly performance since May 2014 when the market rallied after the election of Narendra Modi as Prime Minister.

The Bombay Stock Exchange Sensex, meanwhile, fell 1.68 per cent, or 498.82 points, to 29,182.95. It gained 6.1 per cent in January and added 0.3 per cent in the week.

ICICI Bank, India's biggest private sector bank, fell 5.2 per cent despite posting a record quarterly net profit after net non-performing assets rose.

Bank of Baroda, India's second-biggest lender by assets, slumped 11.1 per cent after it reported a 69 per cent fall in earnings.

Shares in Coal India closed 3.8 per cent down after the government priced its sale of a stake at a 4.5 per cent discount to Thursday's closing price.

(Reuters)