Mumbai: The benchmark BSE Sensex plunged over 308 points in early trade on Tuesday on sustained selling by funds and retail investors ahead of RBI's monetary policy review amid a weak trend overseas.
Also read: Rupee plunges by 32 paise to 66.37 against dollar in early trade
Besides, depreciation in the rupee, which fell by 32 paise to 66.37 against the US dollar, weighed on sentiments.
Continuing yesterday's weakness, the 30-share index fell by 308.90 points, or 1.20 percent, to 25,307.94, with all the sectoral indices, led by metal, banking and auto, trading in negative zone with losses up to 2 percent.
Also read: FPIs in selling mode, take out Rs 6,000 crore in September
The gauge had lost 246.66 points in the previous session.
Also, the National Stock Exchange index Nifty dropped by 94.80 points, or 1.21 percent, to 7,700.90 in early trade.
Also read: India Inc's Aug foreign borrowing up 48% at $751 million
Brokers said besides weak trend on other Asian bourses, tracking heavy selling in Europe and the US on renewed concerns about China's slowing economy, continued selling by cautious funds and retail investors ahead of RBI's policy review later in the day, influenced sentiments.
Among other Asian markets, Hong Kong's Hang Seng was down 3 percent, Japan's Nikkei shed 2.77 percent, while Shanghai Composite index fell 1.87 percent in early trade on Tuesday.
Also read: Top six cos take Rs 53,886 cr hit in market valuation
The US Dow Jones Industrial Average ended 1.92 percent lower in yesterday's trade.
