Sensex retraces Dec gains; blue chips continue losing

Reuters Market Eye - The BSE Sensex is down 0.4 percent, while the Nifty falls 0.46 percent, heading for a fourth consecutive day of decline.

It would also mean domestic shares have retreated in each trading session of 2014, retracing gains of 1.8 percent made in December 2013.

The HSBC Services Purchasing Managers' Index, compiled by Markit, fell to 46.7 in December from 47.2 in November as new orders dwindled, although firms hired at their fastest pace in five months.

Among shares of blue chips, ICICI Bank falls 2.7 percent, while Reliance Industries is down 1.4 percent.

Larsen and Toubro falls 0.8 percent, heading towards its fourth consecutive day of falls for a total decline of 6.2 percent, on concerns that the company's new orders are slowing down, dealers say.

Power producers fall on media reports that the state government in Maharashtra, home to Mumbai, is planning to cut power tariffs.

Tata Power falls 2.7 percent, while Reliance Infrastructure is down 0.7 percent.

Traders are also reducing positions ahead of Infosys' quarterly earnings on January 10 and inflation data mid-month.

(Reporting by Abhishek Vishnoi)