The Bombay Stock Exchange Sensex fell 7.2% in October and logged their biggest monthly fall in a year, after they closed 1% lower on friday as investors gave a thumbs-down to results from some key corporates such as reliance industries and Bharti Airtel.

Energy giant Reliance Industries slumped 3.6% to Rs 1,931.25, its lowest close in 10 weeks, after it posted its fourth-straight decline in quarterly profits. "We believe that the refining segment will remain under pressure in the near term, thus, impacting RIL’s (Reliance Industries) performance," Prabhudas Lilladher said in a note.

"Overhang on the ongoing battle between RIL and Reliance Natural Resources continues to remain a concern. Hence, we maintain ‘reduce’ rating on the stock," it said in a note. Top mobile operator Bharti Airtel tumbled 6.4% to Rs 292.15, as it gave a downbeat outlook due to a nasty price war after posting its slowest pace of profit growth in at least six years.

The Sensex closed 0.97%, or 156.44 points lower, at 15,896.28, after rising to as much as 16,360.88 in early trade, cheered by a rise in global markets, as data showed the United States returned to economic growth.

"The whole concept of ‘buy at dips and sell at rise’ is being reversed," said RK Gupta, managing director of Taurus Mutual Fund. "Results from some companies have disappointed, triggering the fall. People have clarity on fiscal 2010 earnings, but beyond that it’s all guesswork," added Mr Gupta.

The benchmark shed 5.4% in the week declining in all sessions, and posted its highest weekly loss in more than three-and-a-half months, as corporate results failed to cheer and the central bank set a hawkish tone at its quarterly policy meet.

Foreign funds have infused around $14.4 billion in local equities so far this year which has led to a rise of nearly 65% in the benchmark. Sterlite Industries rose as much as 8.3% to Rs 808, after it said its unit Sterlite Energy filed to raise up to Rs 5,100 crore through an initial public offer.

The stock closed 3.4% higher at Rs 771.55. Utility Indiabulls Power, which raised about $380 million in a heavily-subscribed IPO, slumped as much as 22% on debut and could hit investors’ appetite for a long and growing IPO pipeline. The stock closed 12.8% lower at Rs 39.25.

Private lender ICICI Bank climbed 2.4% to Rs 789.60, as it posted a small but surprise rise in quarterly profit on trading gain and lower costs that offset a rise in bad debts. ONGC shed 2.8% to Rs 1,132.70, after it reported a lower-than-expected 5.8% rise in quarterly net profit.

Tata Power plunged 4.4% to Rs 1,343.20, after it said its September quarter net profit dropped by 28%. The NSE Nifty closed 0.8% lower at 4,711.70. The stock market will remain closed on Monday on account of Guru Nanak Jayanti.