Sensex snaps six-day winning streak, blue chips fall

MUMBAI (Reuters) - Indian stock markets retreated from their highest levels in nearly 1-1/2 months on Thursday, snapping a six-day winning streak, on profit-taking in blue chips while lack of announcements on restructuring power distributors' burgeoning loans also hurt.

The benchmark BSE Sensex fell 0.7 percent to 26,845.81. The broader Nifty fell 0.6 percent to 8,129.35.

Among blue chip stocks, Reliance Industries fell 2.7 percent and ICICI Bank lost 1.61 percent.

Index heavyweight and India's biggest cigarette maker ITC lost on media reports of a likely ban on loose cigarettes in Uttar Pradesh.

(Reporting by Neha Dasgupta and Himank Sharma; Editing by Gopakumar Warrier)