Mumbai, Nov 17 (IANS): A benchmark index for Indian equities markets Thursday fell sharply in afternoon trade as concerns on the European debt crisis continued to dampen investor sentiments.

The 30-scrip sensitive index (Sensex) of the BSE, which opened lower at 16,754.68 points, was ruling at 16,568.94 points, down 206.93 points or 1.23 percent from its previous close at 16,775.87 points.

The 50-scrip S&P CNX Nifty of the National Stock Exchange was also trading in the red, 67.65 points or 1.34 percent lower at 4,962.8 points.

Broader markets were also ruling lower with the BSE midcap index down 1.19 percent. The BSE midcap index fell 0.83 percent, while the BSE smallcap index shed 0.58 percent.

The market breadth at the BSE was negative with 979 stocks advancing and 1,718 scrips declining. Another 127 remained unchanged.

Among gainers on the Sensex were: Cipla, SBI, L&T and Hero MotoCorp, while the losers included Maruti Suzuki, Tata Motors, RIL and Wipr.

Asian markets stocks continued to trade cautious as investors were worried over the European Union's ability to curb the debt crisis from spreading to other economies in the zone.

France and Europe have not yet agreed on the European Central Bank's bond buying role, while a bailout fund created to help out heavily leveraged economies is yet to collect funds.

The Japanese Nikkei closed on a lacklustre note, 0.19 percent up at 8,479.63 points, while Hong Kong's Hang Seng was ruling 0.76 percent lower at 18,817.47 points.

The Chinese Shanghai composite index closed flat at 2,463.05 points.