The BSE Sensex fell for a second consecutive session on Wednesday as investors locked in profits in shares of blue chip companies such as ICICI Bank ahead of US monthly jobs data and results of state elections due later in the week.
Delhi held local elections on Wednesday as part of a slew of state polls this month. Results will be declared on Sunday and investors will watch them for clues on how the world's biggest democracy is likely to vote in the general elections due by May next year. Signs the country could be divided in elections could disrupt a rally that has seen shares gain nearly 20 per cent since late August.
Meanwhile, investors are also growing worried the Federal Reserve will soon start tapering its monetary stimulus, hurting foreign flows into emerging markets such as India. Fears of the withdrawal of this easy money roiled Indian markets during the summer, sending the rupee to a record low.
The Sensex fell 0.7 per cent, or 146.21 points, to end at 20,708.71, marking its lowest close in nearly a week. The Nifty fell 0.66 per cent, or 40.90 points, to end at 6,160.95, closing below the psychologically important 6,200 level.
Among blue chip shares, ICICI Bank fell 1.8 per cent, while Larsen and Toubro ended down 1.5 per cent. Meanwhile, ITC fell two per cent while Hindustan Unilever ended 1.2 per cent lower. Maruti Suzuki declined 1.4 per cent on continued pessimism after its sales fell.
