Sensex falls 130 points; FII selling, rupee weakness weighs

Reuters Market Eye - The BSE Sensex falls 0.67 percent and the broader Nifty is down 0.7 percent. Asian shares slipped to fresh 2013 lows on Thursday as growing uncertainty on whether the U.S. Federal Reserve would roll back its stimulus this year kept markets on edge, while choppy Japanese equities put pressure on the dollar against the yen.

Foreign institutional investors (FIIs) have sold about 39 billion rupees worth of index futures in the last four trading sessions, indicating they are bracing for lower levels in cash shares in the near term, dealers say.

Rupee falls to 57/dlr, a level last seen on June 28, 2012, weighed down by persisting concerns about India's current account deficit and the recent FII selling, weakness in domestic shares. ITC Ltd which has highest weight in the Nifty falls 1 percent tracking FII selling index futures.

Reliance Industries Ltd down 1 percent ahead of its annual meet later in the day.

Sun Pharmaceutical Industries Ltd falls 1.6 percent after a source with knowledge of the matter said talks about a deal with Sweden's Meda acquisition had foundered on valuation.

(Reporting by Abhishek Vishnoi)