BSE Sensex Falls over 100 points as Fed Starts Tapering

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December 19, 2013 7:40 PM EST

The BSE Sensex falls after the U.S. Federal Reserve announces the start of its tapering, raising some concerns about foreign investor sales. The BSE Sensex was down 0.5 percent and Nifty fell 0.6 percent at 1.55 pm.

Overseas investors are net buyers of more than $18 billion so far this year, the biggest in emerging Asia, according to Deutsche Bank data earlier this month.

Interest-rate sensitive blue chips lead declines, reversing gains from Wednesday when the RBI unexpectedly kept interest rates on hold.

Analysts note the RBI could resume rate hikes if inflation spikes:ICICI Bank Ltd (ICBK.NS) falls 2.9 percent while Hero MotoCorp Ltd (HROM.NS) is down 0.9 percent.

Software service exporters gain as a strengthening dollar on the back of the Fed taper could weaken the rupee, improving margins from overseas.

Tata Consultancy Services Ltd (TCS.NS) gains 1.5 percent whileInfosys Ltd (INFY.NS) is up nearly 1.7 percent after earlier touching its record high at 3504.70 rupees.

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