Sensex closes below 28,000 on earnings concerns

Stocks dropped on Tuesday, as concern mounted that the rally that pushed up the benchmark index to near a one-year high on Monday isn't supported by corporate earnings.

The Sensex lost 0.4 per cent to close at 27,976.52 points. The gauge's 22 per cent rebound from a low in February amid persistent inflows from overseas funds has sent its valuations to a 15-month high. That makes it prone to declines if the recovery in company earnings fails to gather steam. Six of the 10 firms in the index that have reported results so far have disappointed investors.