Sensex, Nifty fall for second day as Fed rate fears weigh

The BSE Sensex and the Nifty fell for a consecutive session on Wednesday, retreating from record highs hit early this week, as worries that the US Federal Reserve would raise interest rates sooner than expected hit blue-chips like Infosys. Caution is also expected to prevail ahead of the consumer inflation data due on Friday, the last one before the Reserve Bank of India's policy review on September 30.

The benchmark BSE Sensex closed down 0.76 per cent at 27,057.41, retreating further from a record high of 27,354.99 hit on Monday. The broader Nifty fell 0.72 percent to 8,094.10, moving away from its record high of 8,180.20 hit on Monday.

Blue-chips, which have traditionally attracted the bulk of foreign investments, led falls. Reliance Industries Ltd fell 1.7 per cent, adding to its 0.5 per cent drop on Tuesday, while Infosys closed down 1.8 per cent. ITC fell two per cent on newspaper reports that the government was considering tougher regulations on tobacco, including banning the sale of loose cigarettes.