Sensex falls 1 percent on caution ahead of earnings

Reuters Market Eye - The Sensex falls around 200 points amid caution ahead of the July-September earnings season for blue chips, which starts on Friday when Infosys announces its results. The Nifty is lower 1.1 percent.

Traders say weakening growth and high inflation could have weighed on corporate earnings.

Banking stocks slump: ICICI Bank is down 3.1 percent, while HDFC Bank falls 2.4 percent.

Weak Asian shares also dented the sentiment as U.S. lawmakers showed no signs of making any progress to resolve the budget standoff.

However, Apollo Tyres gains as much as 3.8 percent on growing uncertainty about the status of its $2.5 billion deal to buy U.S.-based Cooper Tire & Rubber Co .

 

(Reporting by Abhishek Vishnoi)