Mumbai, Oct 18 (IANS): After a weak start Tuesday, a benchmark index for Indian equities fell further in afternoon trade to rule more than 332 points lower. Heavy selling was seen in IT and telecom stocks.

The 30-scrip sensitive index (Sensex) of the BSE, which opened at 16,817.38 points, was within minutes ruling at 16,692.95 points, down 332.14 points or 2 percent from its previous close at 17,025.09 points.

It had fallen to a low of 16,669.04 points.

The 50-scrip S&P CNX Nifty of the National Stock Exchange was also trading lower, 2.02 percent or 103.5 points down at 5,014.75 points.

Broader markets were also in the red with the BSE 500 index down 1.71 percent. The BSE midcap index was down 1.39 percent, while the BSE small cap index was ruling 1.26 percent lower.

The market breadth at the BSE was negative with 1,764 stocks on the decline, 716 advancing and 110 unchanged.

Some of the major gainers on the Sensex at this time were Coal India, Tata Power, Hero MotoCorp and HDFC, while among losers were TCS, Tata Motors, Wipro and DLF.

Asian markets tumbled Tuesday after rating agency Moody's warned that it may lower France's credit rating. Investors also reacted negatively to the release of Chinese economic data which showed third-quarter gross domestic product of the country had increased at a slower rate of 9.1 percent.

The Japanese Nikkei Monday closed 1.55 percent lower at 8,741.91 points, while Hong Kong's Hang Seng was trading 4.76 percent down at 17,974.98 points.

The Chinese Shanghai composite index was ruling 2.33 percent lower at 2,383.49 points.