Sensex slumps over 1,100 pts in early Thursday trade

Sensex tanked over 1,100 points or 2 per cent in opening trade on Thursday, tracking losses in index-majors Titan, Wipro and HDFC twins amid a weak trend in the Asian markets.

Asian shares fell to their lowest in more than 14 months, short-term US yields rose to 23-month highs and the dollar strengthened after the Federal Reserve's chairman signalled plans to steadily tighten policy.

Investors also turned cautious on rising concerns over political tensions between Russia and Ukraine.

The US Federal Reserve's indication to raise interest rates soon and persistent foreign fund outflows weighed on market sentiment, traders said.

The BSE gauge was trading 1,155.61 points or 2 per cent lower at 56,702.54 in early trade. Likewise, the Nifty declined 329.15 points or 1.91 per cent to 16,948.80.

Titan was the top loser in the Sensex pack, shedding 4.06 per cent, followed by Wipro, Dr Reddy's, HDFC Bank, Tech Mahindra and Infosys.

On the other hand, Maruti and NTPC were the gainers.

Equity, forex and bullion markets were closed on Wednesday on account of Republic Day.

On Tuesday, the 30-share BSE Sensex finished 366.64 points or 0.64 per cent higher at 57,858.15. Similarly, the broader NSE Nifty rose 128.85 points or 0.75 per cent to close at 17,277.95.

Mid- and small-cap shares were negative as Nifty Midcap 100 index was down 1.18 per cent and small-cap shares were trading 0.19 per cent lower.

The US Fed on Wednesday indicated that it may raise interest rates in March to fight inflation. Elsewhere in Asia, bourses in Shanghai, Hong Kong, Seoul and Tokyo were trading with deep losses in mid-session deals.

Stock exchanges in the US ended on a mixed note in the overnight session.

Meanwhile, international oil benchmark Brent crude rose 0.93 per cent to USD 89.12 per barrel.

Foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out Rs 7,094.48 crore Tuesday, as per provisional data.