The stock pared gains later in the day after the central bank brought back the cap after foreign shareholding in HDFC Bank crossed the overall limit of 74 percent of its paid-up capital, within hours of the limit being raised last night.
Market benchmark sensex extended its rally for the second session on Friday, soaring 167 points to end near five-month highs on widespread buying in pharma and bank counters.
The Indian rupee strengthened by four paise to 66.90 against a U.S. dollar from its previous close of 66.94 to a greenback.
It had shed 12.31 points in the previous session.The NSE Nifty ended 67.60 points or 0.77 per cent down at 8,724.70.
Overseas, Asian markets declined following a pullback overnight in two major U.S. stock indexes from record levels. Profit booking was seen in Software, Media, Metals and Auto stocks. The US Dow Jones ended up 0.5 per cent on Tuesday.
The gauge had gained 145.71 points in the previous session.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 215.69 crore yesterday, as per provisional data released by the stock exchanges.
Oil marketing company Indian Oil Corp. gained 2.3% to 384.50 rupees on news the company will be included in the Nifty 50, Bharat Heavy Electricals ended down 0.1% at 153.40 rupees and Idea Cellular fell 1.7% to 106 rupees, as both would be excluded from the index, effective March 31.
Wall Street stocks finished mixed yesterday. Among other prominent gainers, Cipla, GAIL, ICICI Bank and Sun Pharma climbed 1-4 percent.
The 30-share BSE sensex, which opened higher with a gap at 28,670.43, touched a high of 28,726.26 after participants widened their bets on foreign fund inflows amid persistent buying by domestic institutional investors.
In Asia, Japan's Nikkei 225 index fell 0.6% and Hong Kong's Hang Seng declined 0.3%.
Indian shares ended higher on Thursday, driven by gains in IT stocks after Tata Consultancy Services said its board would consider a share buyback plan next week. Infosys Ltd rose 1.6%, Mindtree Ltd 1.7%, Tech Mahindra rose 1.5%, Wipro Ltd 1%, HCL Technologies Ltd 1.4%.