Sensex falls over 1 pct on rising bond yields in Europe, rupee worries

MUMBAI (Reuters) - The BSE Sensex and Nifty fell more than 1 percent on Thursday, dragged down by losses in blue chips on rising bond yields in Europe, while exporters were concerned about the rupee's reversal from key 64 level on flows ahead of key divestments.

India on Wednesday approved the sale of shares in state-run oil refiner Indian Oil Corp and power producer NTPC as part of its plan to raise $11 billion from asset sales this financial year.

Pharmaceutical stocks also treaded water after drugmaker Lupin's January-March earnings disappointed investors.

The Sensex fell as much as 1.1 percent, while the broader Nifty lost 1.2 percent.

India VIX, a gauge of expected volatility in shares, surprisingly rose alongside shares on Wednesday, amid worries about key land and tax reforms, and retrospective taxation of foreign investors.

The volatility index was up 4.6 percent at 21.62 at 9:32 a.m.

(Reporting by Abhishek Vishnoi; Editing by Subhranshu Sahu)