Sensex down around 200 points as Fed starts tapering

Reuters Market Eye - The BSE Sensex falls after the U.S. Federal Reserve announces the start of its tapering, raising some concerns about foreign investor sales. The BSE Sensex and Nifty were down 0.9 percent at 10.54 am.

Overseas investors are net buyers of more than $18 billion so far this year, the biggest in emerging Asia, according to Deutsche Bank data earlier this month.

Interest-rate sensitive blue chips lead declines, reversing gains from Wednesday when the RBI unexpectedly kept interest rates on hold.

Analysts note the RBI could resume rate hikes if inflation spikes: ICICI Bank Ltd falls 2.1 percent while Hero MotoCorp Ltd is down 2.4 percent.

Software service exporters gain as a strengthening dollar on the back of the Fed taper could weaken the rupee, improving margins from overseas.

Tata Consultancy Services Ltd gains 1.5 percent while Infosys Ltd is up 1.3 percent after earlier touching its record high at 3504.70 rupees.

(Reporting by Abhishek Vishnoi)