BSE Sensex falls

The BSE Sensex fell more than 2 percent in early trade on Tuesday, as fresh concerns about the global financial system and economy dampened investor sentiment and sent Asian markets tumbling.
After steep losses in the United States, financial stocks and the shares of outsourcers fell sharply on worries the deepening global crisis and a slowing domestic economy would hurt growth prospects.
Largest-listed firm Reliance Industries lost 3.4 percent to 1,211.25 rupees ($24.3).
"The sentiment is weak because of the meltdown in international markets. Most investors are staying away, and activity is restricted to exiting select stocks," said Gajendra Nagpal, chief executive of Unicon Financial Intermediaries.
By 11:41 a.m., the main BSE stock index had fallen 1.6 percent to 8,702.14, after slipping 2.5 percent at one point and touching its lowest since Dec. 3. Twenty-six of its components were trading lower.
Strong gains in Asian shares on Monday were completely erased as optimism over reports that the U.S. government could take a bigger stake in Citigroup gave way to fresh questions about whether Washington is doing enough to stabilise the ailing banking and credit sectors.
In India, financial stocks saw sharp losses as foreign investors sold on worries higher bond yields will cap treasury income that has sustained profits in the previous quarter.