Sensex snaps five-session winning streak

MUMBAI, Oct 27 (Reuters): The BSE Sensex and Nifty fell on Monday, retreating from a more than one-month high hit earlier in the session as investors booked profits after recent strong gains, while consumer goods maker Hindustan Unilever slumped after it warned the country's consumer spending will remain weak in the near term.
The declines came after the indexes had gained for five consecutive sessions in the week through Wednesday. Share markets were closed Thursday and Friday to mark a religious holiday.
Shares of companies facing regulatory probes also continued to slump, with DLF ending down 7.9 per cent. DLF shares have fallen 23.32 per cent after markets regulator Securities and Exchange Board of India (Sebi) barred it from accessing the capital markets for three years on October 13.
Recent gains might have outpaced the outlook for corporate profits, investors said. Key July-September earnings of top companies, including Hindustan Unilever, Tata Consultancy Services and Bajaj Auto, have so far failed to beat expectations.
"July-September earnings have been mixed. Nothing phenomenal compared to rising expectaions. Some profit-booking would continue till the end of the results season," said UR Bhat, managing director at Dalton Capital, a unit of UK-based investment management firm Dalton Strategic Partnership LLP that manages nearly $2 billion in assets.
Near-term direction would also hinge on the US Federal Reserve meeting's outcome due on Wednesday, the Reserve Bank of India's policy and the winter session of parliament scheduled in the coming months, Bhat added.
The benchmark BSE Sensex fell 0.37 per cent, or 98.15 points, to end at 26,752.90.
The broader Nifty lost 0.29 per cent, or 22.85 points, to end at 7,991.70, closing below the psychologically important 8,000-level.
Both the indexes pared gains after earlier marking their highest intraday levels since September 23.
Hindustan Unilever ended down 5.1 per cent, marking its biggest single-day fall since January 2011, after its July-September volume growth at 5 per cent failed to beat some analysts' estimates, stoking worries of a slowdown in consumer spending despite the ongoing festival season.
Among other companies facing regulatory probes, Jindal Steel and Power lost 8 per cent on an ongoing federal police investigation into coal block allocations.
An unprecedented ban on India's largest listed property developer DLF Ltd from tapping capital markets has fuelled expectations of tougher penalties ahead, as the country's regulators feel emboldened to take on even companies long sheltered by political connections.