India's benchmark share market index finished half a percentage point lower Friday, snapping a nine-day rally that propelled it to an all-time high, on squaring up of positions by fund investors.

Dealers said the stock market opened for the day on a subdued note, tracking the bearish sentiment in major global bourses.

After moving within a close range for the better part of the trading session, the key market index closed for the day in the negative zone on institutional profit taking in heavyweight equities at higher levels.

Mirroring the cautious investors' sentiment, the stock market barometer 30-share Bombay Stock Exchange sensitive index or Sensex closed at 7,754, a loss of 43.08 points or 0.55 percent from its previous session's close.

The market benchmark had closed at an all-time closing high of 7,797.08 Thursday on across-the-board buying interest.

The stock market closed in the positive zone for the 13th consecutive week Friday, making it one of the best performing bourses globally in the current year on hopes that a normal monsoon would boost the economy in the current year.

India's blue-chip equities have soared sharply higher in the last few weeks' trade on hopes that a normal monsoon would boost economic growth in the current fiscal in Asia's fourth-largest economy.

"The stock market had risen sharply higher in the past few weeks' trade and a mid-course correction in blue-chip equities was long overdue," said an analyst with a domestic brokerage firm.

"This will give investors an opportunity to consolidate their portfolio before pouring more money into the trading ring. Retail investors will also get an opportunity to enter the market at a lower level," said the analyst.

Experts said the market rally of the past few weeks was helped by sustained inflows of large-scale foreign institutional investments in the domestic trading ring.

Overseas funds have invested a whopping over $6.5 billion in Indian equities in the current year. This compares with a sell-off of $261.30 million in May and $149.50 million in April.

Foreign institutional investors collectively put in a record $8.5 billion in the last calendar year, up from $6.5 billion in inflows in 2003.

In the old economy sector, shares of Reliance Industries lost 0.6 percent after the company said Friday that a proposal regarding de-merger of its three businesses was still under consideration.

Reliance Industries' stocks had staged a smart rally in the previous session on reports that the de-merger had finally been approved.

As part of the de-merger plan, Reliance Industries is likely to be separated from power, financial services and telecom business.

Shares of two-and-three wheeler major Bajaj Auto fell 3.3 percent to Rs.1,481 and Hero Honda Motors, the country's largest motorcycle maker, ended 2.6 percent lower at Rs.614.