The benchmark BSE Sensex plunged over 220 points in the pre-noon trade as the firing of a missile over Japan by North Korea rattled investors, while the expiry of local derivatives contracts this week also hit the domestic sentiment.

In a sharp escalation of tensions on the Korean peninsula, North Korea fired a missile early on Tuesday that flew over Japan and landed in Pacific waters about 1,180 kilometres (735 miles) off the northern region of Hokkaido.

At 11.45 a.m., the 30-share BSE index Sensex was down 227.65 points or 0.72 per cent at 31,523.17 and the 50-share NSE index Nifty was down 76.6 points or 0.77 per cent at 9,836.20.

Among BSE sectoral indices, infrastructure index fell 0.82 per cent, followed by power 0.78 per cent, TECk 0.67 per cent and capital goods 0.63 per cent. On the other hand, realty index was up 0.11 per cent, metal 0.08 per cent and oil & gas 0.07 per cent.

Major Sensex losers were NTPC (-3.2%), HDFC (-1.9%), HUL (-1.23%), Cadila (-1.19%) and Sun Pharma (-1.18%), while the only two gainers were ICICI Bank (+0.33%) and Tata Steel (+0.02%).

Gainers, losers

Power producer NTPC Ltd was the biggest loser on both the indexes. The stock declined over 4 percent after the Indian government said it would sell a 5 per cent stake in the company with an option to sell 5 percent more through a two-day stock market auction in a potential $2.2 billion deal.

Meanwhile, shares in Infosys Ltd fell 1 per cent on profit-booking after having risen nearly 8 per cent in the last four sessions.

The stock had gained more than 3 per cent in the previous session, with co-founder Nandan Nilekani returning as chairman after the shock resignation of chief executive Vishal Sikka last week.

Shares in ACC Ltd, Bank of Baroda and Tata Power Co Ltd dropped after their exclusion from the NSE index.

Meanwhile, Reliance Infrastructure Ltd surged 7.7 per cent on reports that renewable energy firm Greenko is in talks to buy the company's electricity business in Mumbai.

F&O expiry

The missile firing added to the unease in domestic markets that were already cautious ahead of the monthly derivatives contracts expiry on Thursday.

“Early negativity from Asian markets over North Korea followed through to the domestic market,” said Anand James, chief market strategist with Geojit Financial Services.

“Investors are also booking profits after Nifty tested 9,900 levels on Monday while there is some volatility ahead of the expiry,” he added.

Asian shares

S&P mini futures fell as much as 0.85 per cent on the news before paring losses to trade 0.5 per cent below its close on Monday, when it was little changed. Japan's Nikkei fell 0.7 per cent to four-month low while South Korea's Kospi shed 0.5 per cent, helping to drag down MSCI's broadest index of Asia-Pacific shares outside Japan 0.3 per cent.

US stocks

The S&P 500 and Dow had ended little changed on Monday, with energy and bank shares lower as Tropical Storm Harvey crippled the US energy hub in Texas, while tech and healthcare gave a light boost to the Nasdaq.

The Dow Jones Industrial Average fell 5.27 points, or 0.02 per cent, to close at 21,808.4, the S&P 500 gained 1.19 points, or 0.05 per cent, to 2,444.24. The Nasdaq Composite added 17.37 points, or 0.28 per cent, to 6,283.02 helped by rises in Apple and Gilead Sciences.