Sensex falls third straight session; S&P statement hurts

MUMBAI (Reuters) - The BSE Sensex fell for a third consecutive session on Thursday after Standard & Poor's said it may cut the country's sovereign rating if the next government fails to provide a credible plan to revive the economic growth.

Traders said TV reports quoting economic affairs secretary Arvind Mayaram as saying that state-run oil demand has returned to sourcing dollars from markets also hurt shares by raising concerns about the outlook for the rupee.

The Sensex provisionally closed down 0.40 percent, while the Nifty ended 0.48 percent lower.

Banks which had rallied in recent weeks saw profit-taking after initial gains. State Bank of India dropped 3.24 percent, while ICICI Bank fell 2.9 percent.

Still, technology shares gained as they benefited from a weaker rupee. Tata Consultancy Services rose 1.2 percent, Infosys gained 1.3 percent and HCL Technologies added 2 percent.

(Reporting by Swati Bhat; Editing by Subhranshu Sahu)