BSE Sensex falls 1.2 pct; Reliance, L&T drop

MUMBAI (Reuters) – The BSE Sensex slid 1.2 percent on Thursday, tailing lower Asian peers and investor worry about direction following sharp swings over the past two days.

Energy giant Reliance Industries fell 2.1 percent to 1,879.80 rupees, as investors awaited the hearing in its gas dispute with Reliance Natural Resources to resume during the day.

One of the judges withdrew from the Supreme Court hearing on Wednesday, citing potential conflict of interest.

Engineering and construction firm Larsen & Toubro shed 2.3 percent to 1,512 rupees, after The Financial Express reported its outsourcing unit was in talks to buy a majority stake in Patni Computer Systems.

Patni Computer was trading 5.3 percent higher at 481 rupees.

By 11:06 a.m. (0536 GMT), the 30-share BSE index was trading down 1.2 percent at 15,720.01, with 22 of its components declining.

"The recovery that we saw yesterday after a continuous fall, is likely to be tentative," said Gajendra Nagpal, CEO of Unicon Financial. "Though a huge downside is unlikely, some pain still remains. Investors are cautious for now."

The benchmark index had risen 3.3 percent on Wednesday after falling 8.4 percent over six sessions. Traders said they were also awaiting the weekly inflation

data due by midday (0630 GMT).