Sensex, Nifty head towards 2-1/2 week closing low

Reuters Market Eye - The BSE Sensex falls 0.8 percent, while the Nifty is down 0.82 percent, heading towards their lowest close since March 27, as continued sales by overseas investors and higher inflation data increase caution amid five-week-long elections.

Overseas investors sold Indian shares worth 216.3 million rupees ($3.59 million) on Tuesday, provisional exchange data shows, adding to Friday's sale of $68.81 million.

Foreign investors also sold equity derivatives worth 12.18 billion rupees on Tuesday.

Data released after markets closed on Tuesday showed India's annual consumer price inflation quickened to 8.31 percent in March, driven by higher food prices.

Among blue chips, Larsen & Toubro falls 1.6 percent while Kotak Mahindra Bank is down 2 percent.

Caution also prevails ahead of Tata Consultancy Services results later in the day, with IT shares leading the falls.

Infosys is down 2.8 percent while TCS falls 2 percent.

(Reporting by Abhishek Vishnoi)