Nifty slumps 2 percent; food bill raises deficit concerns

MUMBAI (Reuters) - The NIfty fell as much as 2 percent as blue chip shares including HDFC Bank slumped on concerns that the passage of food security bill will weigh on the country's fiscal and current account deficits, raising fears of a sovereign rating downgrade.

The lower house of parliament approved a plan worth nearly $20 billion on Monday to provide cheap grain to the poor.

HDFC Bank Ltd fell 5.5 percent, while ITC Ltd lost 1.3 percent.

The broader Nifty fell 2 percent, while the benchmark BSE Sensex slumped 1.8 percent.

(Reporting by Abhishek Vishnoi; Editing by Subhranshu Sahu)