Sensex dips 100 pts on earnings fears

Snapping four straight sessions of gains, the BSE benchmark Sensex on Monday declined by almost 100 points to close at 17,705.01 on profit taking as fears of disappointment over earnings weighed, even as ICICI Bank and Hindustan Unilever Ltd (HUL) posted good quarterly earnings.

According to brokers, investors booked profits in refinery and metal counters after solid gains last week. Select capital goods and auto counters also attracted selling. The 30-share Sensex was weighed down mainly on the fall in Reliance Industries, Tata Motors, ONGC, ITC, and TCS.

HUL stole the limelight as its second quarter earnings boosted investor confidence. It closed up 7.38 per cent — the biggest gain among all Sensex stocks — and cushioned the fall to some extent.

Market players said the barometer resumed stable after last week's Diwali rally, but moved downwards later. The key index finally ended the day at 17,705.01, a net loss of 99.79 points or, 0.56 per cent, from its last close.

The National Stock Exchange’s Nifty fell 34.1 points or, 0.64 per cent, to 5,326.6.

Hindalco was the top Sensex loser at 4.11 per cent, followed by Sterlite Industries at 4.10 per cent. Auto major Tata Motors was another big loser at 3.76 per cent. Market leader RIL lost 2.26 per cent. Software services exporter Wipro ended two per cent lower, after having risen as much as three per cent on better-than-expected second quarter results.

ICICI Bank closed lower after rising as much as 2.2 per cent, as it beat Street estimates with a 21.6 per cent rise in second-quarter profit, led by higher income from interest and investments and lower provisions for bad loans. Shares of rival HDFC Bank , however, ended 1.5 per cent higher.