Mumbai: The BSE benchmark Sensex tumbled over 245 points in early session today amid uncertainty over government formation in Karnataka and sustained foreign fund outflows.

The 30-share index was trading lower by 245.23 points, or 0.69 percent, at 35,298.71.

Yesterday, the gauge had soared more than 400 points intra-day after the BJP emerged as the single largest party in Karnataka. However, it gave up all gains to end modestly lower after the Congress unexpectedly stitched up a post-poll alliance with the JD(S) and staked claim to form the government.

Sectoral indices led by bankex, PSU, oil and gas and healthcare were trading in the red, down by up to 1.90 percent.

The NSE Nifty fell 72.85 points, or 0.67 percent, to 10,729.

Brokers said apart from political uncertainty in Karnataka, a weak trend at other Asian bourses following overnight losses at the Wall Street dampened sentiments.

Global markets were stumped after North Korea cancelled high-level talks with Seoul and threatened to call off the much anticipated summit with the US if it was pushed into unilaterally giving up its nuclear arsenal.

Back home, trade deficit widened to $13.7 billion in April, which further affected trading sentiment.

Prominent losers included Hero MotoCorp, ICICI Bank, SBI, Adani Ports, RIL, ONGC, Axis Bank, Bajaj Auto, M&M, Coal India, IndusInd Bank, NTPC and Bharti Airtel, falling by up to 3.27 percent.

Meanwhile, foreign portfolio investors (FPIs) sold shares worth a net Rs 518.47 crore, while domestic institutional investors (DIIs) bought shares worth Rs 531.33 crore yesterday, as per provisional data.

Among other Asian markets, Hong Kong's Hang Seng shed 0.49 percent while Japan's Nikkei was down by 0.38 percent in early trade today. The Shanghai Composite Index too inched lower by 0.25 percent.

The US Dow Jones Industrial Average ended 0.78 percent lower yesterday.

Rupee rebounds

The rupee rebounded by 27 paise to 67.80 per dollar in early trade today on fresh selling of the US currency by exporters and banks. Yesterday, the rupee had lost 56 paise -- the second biggest single-day fall of 2018 -- to end at a new 16-month low of 68.07 as panic dollar demand rattled the currency market.

Traders said the dollar's strength against other currencies overseas, as a surge in the benchmark 10-year Treasury yield above 3 per cent reignited a rally that had lost steam last week, capped the rupee's gains.


Updated Date: May 16, 2018 10:28 AM