The BSE benchmark index on Tuesday Sensex slumped by over 130 points in early trade due to selling by funds and speculators as rupee dropped to a new all-time low amid a weak trend at the Asian markets.
The 30-share barometer, which had gained 11.84 points in yesterday's volatile session, fell by 130 points, with stocks of realty, consumer durables, metal, banking and auto sectors succumbing to selling pressure.
Similarly, the wide-based National Stock Exchange index Nifty declined by 38 points, or 0.63 per cent, to 5,841.
Brokers said selling by participants, triggered by a weakening rupee which plunged to fresh record low of 58.35 against the dollar in early trade today, heightening inflation worries and a weak trend on Asian bourses following overnight weakness on the US market, dampened the sentiment here.
Software stocks were in the limelight on hopes that a falling rupee would improve margins.
In the Asian region, Hong Kong's Hang Seng index fell by 0.90 per cent, while Japan's Nikkei Index edged shed 0.82 per cent. The US Dow Jones Industrial Average ended 0.06 per cent lower yesterday.
With inputs from PTI