The BSE benchmark Sensex tumbled by 225 points in late morning trade today on persistent selling pressure in banking, capital goods, auto, PSU and realty sectors triggered by further depreciation of rupee against the dollar.
The rupee hit a record low of 62.45 per dollar in the late morning deals today.
Foreign capital outflows continued to affect the market sentiment. Foreign institutional investors (FIIs) sold shares worth a net Rs 563.23 crore last Friday, as per provisional data from the stock exchanges.
The BSE-30 share index Sensex resumed lower at 18,587.38 points and dropped further to a low of 18,303.20 before quoting 18,373.17 at 1040 hours.
It showed a loss of 225.01 points or 1.21 per cent from its last weekend's level.
The NSE 50-share barometer Nifty also fell by 86 points, or 1.56 per cent, to 5,421.85 at 1040 hours.
Major losers were - M&M (4.94 pc), Bajaj Auto (4.63 pc), ICICI Bank (3.74 pc), Bharti Airtel (3.62 pc), Hero Motocorp (3.12 pc) and L&T (2.11 pc).
Most Asian stocks fell for a third straight day as worries about the Federal Reserve's policy outlook and rising US Treasury yields weighed on sentiment.
Key benchmark indices in Hong Kong, China, South Korea and Taiwan were down by 0.08 to 3.79 per cent, while indices in Japan and Singapore rose by 0.02 to 0.35 per cent, respectively.
The Sensex falls around 200 points, while the Nifty falls 1.3 percent after marking its lowest intraday level in 11 months, extending Friday's 4 percent slump as a record low of rupee weighs.
The rupee fell as much as 62.40 to the dollar in early trade, breaching the previous low of 62.03 hit on Friday as the government's steps unveiled last week seemed inadequate to stall the currency's fall.
Also, foreign institutional investors sold 5.63 billion rupees of cash shares on Friday, ending a 3-day buying streak, exchange data showed.
Asian markets face a tense few days waiting to see if minutes of the Federal Reserve's last policy meeting will provide some clarity on when it might start scaling back stimulus -- with far-reaching implications for borrowing costs across the globe.
(with Reuters Input)