Sensex, Nifty fall after Nikkei slumps; blue chips hit

Reuters Market Eye - The BSE Sensex is down 0.11 percent and the Nifty falls 0.21 percent. Blue chips such as ITC Ltd fall 1 percent while ICICI Bank Ltd is down 0.7 percent.

Japan's Nikkei share average fell 1.7 percent and entered bear market territory on Friday, having plunged 20 percent from a 5-1/2 year high hit last month.

Dealers say sustained fears that a weakening rupee would lead foreign investors to pare positions may hit blue chips.

Also, foreign institutional investors (FIIs) have sold about 50.5 billion rupees of index futures in the last five trading sessions, indicating they are bracing for lower levels in shares in the near term, dealers add.

 

Shares in Future Retail Ltd fall 2 percent on Friday after the government said foreign supermarkets entering India must invest in new supply infrastructure, rather than buying existing assets.

(Reporting by Abhishek Vishnoi)