* NSE index down 0.7 pct, BSE index 0.55 pct lower
* Nifty IT index takes a hit; Infosys, TCS down
* Oil retailers Bharat Petroleum, IOC decline
By Aby Jose Koilparambil
Dec 12 Indian shares fell on Monday, heading for
their first drop in three sessions, as information technology
stocks were hit by tough talk on visas by U.S. president-elect
Donald Trump, while oil retailers declined after crude prices
surged to their highest since mid-2015.
Sentiment was also dampened after industrial output
unexpectedly fell in October by 1.9 percent, driven down by a
contraction in manufacturing and mining sectors, according to
data released late on Friday.
Falls tracked weaker global markets as the dollar continued
to extend gains before a widely expected rate hike by the U.S.
Federal Reserve later this week.
"Trump's comments on H1B visas have impacted sentiments now.
IT was supposed to break out on the upside and many long
positions were taken in the sector," said Sangeeth V., an
institutional sales trader with Paterson Securities.
Sentiment is also weak after crude crossed the $50 mark
following an output-cut deal involving OPEC and other producers,
The broader NSE index was down 0.7 percent at
8,203.70 by 0555 GMT, while the benchmark BSE index was
0.55 percent lower at 26,600.15.
IT firms were among the leading decliners, with the Nifty IT
index shedding as much as 1.51 percent, after Trump
on Friday pledged to stop companies from abusing the visa
process for foreign workers.
Infosys Ltd fell as much as 2.44 percent, while
Tata Consultancy Services Ltd and Wipro Ltd
shed up to 1.47 percent and 1.44 percent, respectively.
Oil retailers were down on concerns about the impact of
higher crude prices. Bharat Petroleum Corp Ltd fell as
much as 2.51 percent, while Indian Oil Corp declined up
to 2.23 percent.
But oil and gas explorer Oil & Natural Gas Corp
rose as much as 2.54 percent, making it one of the top gainers
on the NSE index, as it would benefit from higher crude prices.
(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by