Corrected: Sensex, Nifty fall for 2nd day; econ survey, budget in focus

(Corrects to say "more than" six-month high, from "near" six-month high in 10th paragraph)

By Darshana Sankararaman

(Reuters) - Indian shares fell for a second consecutive session on Tuesday on caution ahead of an annual economic survey and the federal budget, while risk sentiment was hit as Asian shares fell on worries over U.S. President Donald Trump's immigration policy.

The finance ministry's chief economic adviser, Arvind Subramanian, will later in the day unveil the economic survey, which will contain assumptions underpinning the annual budget - and float new policy ideas.

India's government is then due to present its 2017/18 budget on Wednesday, less than three months after Prime Minister Narendra Modi's bold and risky gamble to outlaw high-value old currency notes.

"There is a little bit of anxiety now regarding what the economic survey will say and what the budget holds. So, the market is playing it safe," said V.K. Vijayakumar, chief market strategist at Geojit BNP Paribas Financial Services.

The broader NSE Nifty was down 0.50 percent at 8,589.30 by 0550 GMT, while the benchmark BSE Sensex was 0.38 percent lower at 27,744.40.

Asian shares slipped on Tuesday as stringent curbs on travel to the U.S. ordered by Trump brought home to investors that he is serious about putting his controversial campaign pledges into action.

In particular, India's IT sector has been hit by worries about tighter U.S. visa rules.

The Nifty IT index fell as much as 2 percent and was the biggest drag on the NSE index.

Software exporters Infosys Ltd and Tata Consultancy Services Ltd lost as much as 1.84 percent and 2.48 percent, respectively.

Idea Cellular Ltd gained as much as 14.3 percent to a more than six-month high after Vodafone Group said on Monday it was in talks to merge its Indian unit with Idea.

Oil and Natural Gas Corp rose as much as 4.93 pct to its highest since June 2015 after the company received a first instalment from Venezuela towards recovering pending dividend.

(Reporting By Darshana Sankararaman in Bengaluru; Editing by Biju Dwarakanath)