Sensex tanks 200 pts; European markets open 1% down

The BSE Sensex fell more than 200 points in afternoon trade following weak opening of European markets. France's CAC, Germany's DAX and Britain's FTSE were down 1% each while Spain and Italy tanked nearly 2% as the market doubts over Spain's ability to avoid a sovereign bailout after two indebted regions (Valencia and Catalonia) sought financial assistance from the central government.

The BSE benchmark tumbled 210.84 points or 1.23% to 16947.60 and the NSE benchmark was down 67.40 points or 1.29% to 5,137.70.

Top private sector lender ICICI Bank lost 1.6% while its rivals State Bank of India and HDFC Bank were down more than 1%.

Commercial vehicle maker Tata Motors and telecom operator Bharti Airtel plunged more than 2%.

Software services exporter Infosys and cigarette major ITC were down 1% each. Engineering and construction major by sales Larsen & Toubro slipped 1.6% ahead of June quarter numbers as analysts on an average expect standalone profit after tax to grow by 11% year-on-year to Rs 827 crore in the quarter ended June 2012.

Country's largest car maker Maruti Suzuki crashed 6% due to work stoppage at Manesar plant after Wednesday's violence.

Metals stocks like Tata Steel, Sterlite Industries and Hindalco tanked over 3%. State-owned power equipment manufacturer BHEL too was down 3%.