Sensex trips 130 points as lower earnings, US markets and profit-booking takes hold

The benchmark BSE Sensex fell over 130 points in early trade today on emergence of profit-booking by participants after recent gains amid disappointing corporate earnings.

The 30-share index fell 130.70 points, or 0.46%, to 27,826.80 as FMCG, metal, consumer durables, auto, banking and capital goods stocks succumbed to profit-booking. 

The gauge had gained 148.15 points in the previous session on Friday on renewed hopes of a rate cut. On similar lines, the NSE Nifty dropped 40.25 points, or 0.47%, to 8,418.70 in early trade. 

Brokers said besides profit-booking, lower-than-expected Q4 earnings by some companies and weekend losses in US markets influenced sentiment here. 

Shares of ITC suffered the most in early trade and was trading 2.59% down at Rs 319.95 after the company's Q4 earnings failed to meet market expectations. 

The diversified group on Friday reported a modest 3.65% rise in its standalone net profit at Rs 2,361.18 crore for the quarter ended March 31, 2015. 

Among other Asian markets, Japan's Nikkei rose 0.70% in early trade today while Hong Kong's markets were closed for a public holiday. 

The US Dow Jones Industrial Average ended 0.29% lower in Friday's trade.