Stocks dropped, paring a monthly advance, amid concern that the recent rally may have outpaced the outlook for earnings growth and as most Asian equities decreased after the Bank of Japan's policy decision.
ICICI Bank had the steepest fall in more than a month before its earnings, the worst performance on the S&P BSE Sensex. Bharti Airtel decreased the most in two weeks. Larsen & Toubro, the nation's engineering firm, retreated for a second day before its June-quarter results.
The Sensex declined 157 points or 0.6 per cent to 28,051.86 at the close, falling from a one-year high reached on Thursday. The gauge has rallied four per cent this month, pushing up its valuations to a 15-month high. That leaves little room for further upside if corporate earnings disappoint, according Taurus Asset Management Co. The 50-share NSE Nifty ended 27.80 points or 0.32 per cent down at 8,638.50.