Sensex, Nifty falls more than 1 percent; rupee slumps

REUTERS - Sensex fell 1.4 percent on Wednesday, marking a seventh straight session of losses, as firefighting between the Indian army and insurgents across the India-Myanmar border further dented already weak sentiment.

The fall marked the longest losing streak since the seven-day losing streak in mid-December, while the rupee sank to a more than six-month low on foreign fund outflows.

The Sensex ended 1.39 percent lower at 31,159.81, while the Nifty fell 1.38 percent to 9,735.75. The indexes earlier hit their lowest levels in over six weeks.

NSE's volatility index, the domestic equivalent of the VIX fear gauge, rose as much as 9.6 percent.

(Reporting by Vishal Sridhar in Bengaluru; Editing by Amrutha Gayathri)