Mumbai, Dec 13 (IANS): Indian benchmark indices Sensex and Nifty fell more than 1 per cent on Friday. At around 10.51 a.m., the Sensex fell 1,017.03 points or 1.25 per cent to 80,272.93, while the Nifty fell 306.80 points or 1.25 per cent to 24,241.90.

The market trend remained negative. On the National Stock Exchange (NSE), 340 stocks were trading in green, while 2,047 stocks were in red.

The market remained in turmoil due to heavy selling by Foreign Institutional Investors, the rising US bond yields and ongoing conflicts in the Middle East. On the other hand, the decision to be taken by the Federal Reserve on interest rates on December 18 has increased concern in the market.

Foreign institutional investors (FIIs) sold shares worth Rs 3,560.01 crore in the Indian market on December 12, while domestic institutional investors bought shares worth Rs 2,646.65 crore on the same day.

According to market experts, "In the near term, the market has a headwind and a tailwind. The headwind is the resumption of selling by the FIIs who sold stocks for Rs 3,560 crore yesterday. Given the high valuations in India FIIs are likely to sell more at every market rise."

"Selling has been profitable for FIIs since the dollar has been appreciating after the US election. The tailwind which can support the market is the declining inflation," they added.

In the Sensex pack, Tata Steel, JSW Steel, IndusInd Bank, Axis Bank, Bajaj Finserv, SBI, M&M and Bajaj Finance were the top losers.

In the broader market, Nifty Bank was down 839.65 points or 1.58 per cent at 52,376.80, Nifty Midcap 100 index was trading at 58,082.85 after dropping 938.85 points or 1.59 per cent. Nifty Smallcap 100 index was at 19,074.70 after dropping 391.85 points or 2.01 per cent.

On the sectoral front, heavy selling was seen in Nifty PSU Bank, metal, realty, auto, IT, pharma and FMCG sectors.