Sensex tumbles by 384 pts on sustained selling

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The BSE benchmark Sensex dropped sharply by 384 points in early trade today, extending its losses for the fourth straight session on sustained selling by foreign funds and retail investors amid mixed global cues.

IT stocks extended their recent losses on weak economic data from the US and the continuing sovereign debt crisis in Europe.

The major losers in early trade were RCom (down 7.10 per cent), Reliance Infra (6.80 per cent), Jaiprakash Associates (4.66 per cent), Cipla (4.37 per cent), M&M (3.59 per cent), Wipro (3.55 per cent) and TCS (3.49 per cent).

Market experts said the trading sentiment remained bearish on concerns of rising interest rates and reports of lower advance tax collections by the government.

The BSE benchmark Sensex resumed higher at 17,925.17, but later it dropped sharply to a low of 17,314.38 before quoting at 17,486.10 at 1015 hours, showing a sharp loss of 384.43 points, or 2.15 per cent, from its last close.

The NSE's 50-share Nifty index fell by 126.60 points, or 2.36 per cent, to 5,239.80 at 1015 hours.

Asian stocks were mixed early today. The key benchmark indices in Japan, Indonesia, Hong Kong and Singapore, rose by between 0.2 per cent to 0.53 per cent. However, the key indices in China, South Korea and Taiwan fell by between 0.08 per cent to 0.88 per cent.

Trading in US index futures indicated that the Dow could fall by 39 points at the opening bell today.