Sensex falls; economic data pares rate cut hopes

Reuters Market Eye - The BSE Sensex is down 0.49 percent, while the Nifty falls 0.63 percent. Stocks sensitive to interest rates fall after better-than-expected factory data and accelerating consumer inflation pare some of the rate cut hopes for the RBI's policy review on March 19.

ICICI Bank Ltd falls 1.2 percent, while HDFC Bank Ltd is down 2.2 percent.

January industrial production rose at a stronger-than-expected 2.4 percent from a year earlier, while CPI rose 10.91 percent from 10.79 percent in January. (Read full story http://in.reuters.com/article/2013/03/12/india-factory-output-january-idINDEE92B02B20130312)

IT stocks fall for a second day on profit-booking after last week's rally.

Tata Consultancy Services falls 0.8 percent while Infosys is down 0.9 percent.

 

(Reporting by Abhishek Vishnoi)