Sensex lower; FII index future sales weigh

Reuters Market Eye - The BSE Sensex and the broader Nifty are trading lower on increasing caution over slowing foreign portfolio investments.

Overseas investors sold index futures worth 4.44 billion rupees ($73.91 million) on Tuesday, resuming their five-day selling streak after a one-day halt on Monday.

Foreign institutional investors bought Indian shares worth 459 million rupees on Tuesday, lower than the five-day average, provisional exchange data shows, on increasing caution ahead of the election results on May 16.

ICICI Bank falls 0.8 percent while Hindalco Industries is down 1.3 percent.

Infosys falls 2.4 percent after UBS downgrades the stock to "sell" from "buy" and cuts its target price to 2,750 rupees from 4,050 rupees, saying a turnaround at the IT outsourcer could take longer than expected.

 

However, Lupin Ltd gains 1.2 percent ahead of its January-March results later in the day.

(Reporting by Abhishek Vishnoi)