MUMBAI: Benchmark BSE index ended down 0.69 percent on Thursday, snapping a six-day rally as investors booked profits, especially in blue chips such as Reliance Industries.

The drop, in contrast with Asian peers, came after indices posted their best weekly gain since 2011 in the week ended March 4, boosted by a fiscally prudent budget announcement.

"In India, there is a positive feeling after the Budget, but there will always be an overhang of global volatility, which could be coming from Europe, the US or China," said Sadanand Shetty, senior fund manager at Taurus Mutual Fund, which has about  5,000 crore (around $746 million) in assets under management.

The broader NSE index lost 0.45 percent or 45.65 points at 7,486.15, while the benchmark BSE index dropped 0.69 percent or 170.62 points to end at 24,623.34.

Investor sentiment has improved after the Government stuck to its fiscal deficit target for the next financial year, raising hopes the central bank would soon cut key policy rates.

Mirroring the optimism, foreign investors net bought $1.11 billion worth of shares this month, but have been net sellers worth $1.77 billion for the year.

Among the losers, power equipment maker Bharat Heavy Electricals fell 3.07 percent on media reports rating agency CRISIL has lowered the rating of the company's long-term bank facilities citing a constrained business risk profile.

Reliance Industries fell 3.1 percent after gaining 3.5 percent over the past two sessions, amid expectations it would declare a dividend at a board meeting on Thursday.

Software maker Infosys fell 3.04 percent on reports four shareholders have put up for sale a block of shares to raise up to  880 crore (around $131 million).

Miners such as Vedanta Ltd and Hindalco Industries finished the day 0.28 percent and 2.9 percent higher, respectively, on reports the government has cleared an amendment to the mining Act.

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