Mumbai: Sensex slipped by over 500 points in early session on Thursday as rupee continued to fall on the back of fears of widening current account deficit and weak global cues.

The prices of Brent crude oil also crossed the US 86 per barrel level, nearing its four-year high.

The benchmark index of BSE plummeted 600 points, or 1.68 per cent, to 35, 343.86 in early trade with most of the sectoral indices trading in the negative zone.

The laggards include Reliance Industries, Hero MotoCorp, Maruti Suzuki, Bharti Airtel, HDFC, Infosys, Coal India, SBI, HDFC Bank, M&M, IndusInd Bank, Adani Ports, Axis Bank, NTPC, and PowerGrid, falling up to 4.75 per cent.

Sensex was down by nearly 550 points on Wednesday.

The NSE Nifty index too fell 175 points, or 1.78 per cent, to 10,664.60.

Brokers said that weakness was seen in most Asian markets as high US yield and good economic data led to fear that investors would move to the US, dampened trading sentiments here.

The rupee’s plunge to a new record low of 73.77 against the dollar by falling 44 paise in early trade, too, weighed on investor mood.

Commerce and Industry Minister Suresh Prabhu will hold an inter-ministerial meeting later in the day to discuss trade deficit and its impact on rupee as well as ways to boost exports, an official told PTI.

Representatives from the department of economic affairs, coal ministry, steel ministry, oil ministry and department of pharmaceuticals are expected to attend the meeting.

Foreign portfolio investors (FPIs) bought shares worth a net of Rs 1,550 crore, while domestic institutional investors (DIIs) made purchases to the tune of Rs 1,402 crore Wednesday.

Elsewhere in Asia, Hong Kong’s Hang Seng, Japan, Singapore and Taiwan were trading sharply lower by falling over 1 per cent.

The US Dow Jones Industrial Average, however, ended 0.20 per cent higher Wednesday.

The monetary policy meeting of the Reserve Bank of India is also underway this week and the announcement is expected on Friday. Market participants are expecting an increase in key lending rates given the sharp rise in crude oil prices.

(With PTI Inputs)