By Abhishek Vishnoi
MUMBAI (Reuters) - The BSE Sensex fell on Friday, failing to extend their third weekly gains, as some blue chip shares such as Sun Pharmaceutical were hit by profit-taking after marking their highest level since November 2010 earlier in the week.
Shares gained nearly 5 percent in the last three weeks, benefiting from a return of global risk appetite as poor U.S. data has pushed back expectations of any tapering of the Federal Reserve's monetary stimulus until 2014.
Foreign investors have continued to buy local shares, remaining net buyers for a 15th consecutive session. Provisional exchange data showed a net purchase of 9.91 billion rupees on Thursday, bringing the total to nearly 125 billion rupees during that period.
Traders expect volatility in coming days as concerns over another interest rate hike by the Reserve Bank of India in its policy review on October 29 and U.S. Federal Reserve policy meeting outcome on October 30 take centre stage amid expiry of the October derivative contracts.
Although earnings of drug exporters including Lupin Ltd
"It is going to get volatile as expiry of derivatives contracts and RBI policy are coming at a time when we are almost virtually at lifetime highs," said Vivek Mahajan, head of research at Aditya Birla Money.
The Sensex fell 0.2 percent, or 41.91 points, to end at 20,683.52, also marking a weekly fall of 0.95 percent, snapping a three-week winning streak.
The Nifty fell 0.32 percent, or 19.45 points, to end at 6,144.90, marking its fourth consecutive day of falls, also ending 0.7 percent lower for the week.
However, Deutsche Bank raised its December 2013 target for the Sensex to a record high at 22,000 points from 21,000, saying investor pessimism earlier this year was receding amid positive developments such as a good monsoon.
Among blue chip shares, Sun Pharmaceutical Industries Ltd
The company said its September-quarter net profit rose 21.7 percent to 22.31 billion rupees.
Hindustan Unilever Ltd
Bharti Airtel Ltd's
Idea shares also ended 1.9 percent lower.
GAIL (India) Ltd
However among stocks that gained, ICICI Bank Ltd
(Editing by Anand Basu)