Sensex falls for second day; ITC, metals hit

MUMBAI (Reuters) - The BSE Sensex fell for a second straight session on Wednesday, led by declines in ITC Ltd after the government proposed to amend anti-smoking laws, including banning the sale of loose cigarettes.

Sentiment was also hit as metal stocks slumped, tracking falls in commodities after the World Bank cut its global growth forecasts for 2015 and 2016.

However, losses were limited as slower-than-expected inflation in December raised hopes for an early cut in interest rates to help the economy out of its longest phase of sub-par growth since the 1980s.

The benchmark BSE Sensex fell 0.29 percent, while the broader Nifty lost 0.26 percent.

 

ITC fell 3.4 percent after the health ministry proposed on Tuesday to amend the anti-smoking law, which investors fear may lead to reduced volumes, especially if the sale of loose cigarettes is banned.

Sesa Sterlite slumped 8.1 percent, while Hindalco Industries lost 6.3 percent, after copper futures slumped to more than 5-1/2 year lows.

(Reporting by Abhishek Vishnoi; Editing by Prateek Chatterjee)