Mumbai, May 7 (IANS): Dragged by dismal corporate earnings, caution amid the ongoing polls and emergence of fresh US-China trade tension, the key equity indices fell nearly 1 per cent on Tuesday.

Equities came under selling pressure post noon over selling in select stocks from institutions after they opened in the green alongside other Asian markets. The fear index or the "VIX" finished over 26 -- close to its 52-week high of 27.8.

The Sensex closed lower 323.71 points or 0.84 per cent at 38,276.63 and the Nifty finished 100.35 points or 0.87 per cent down at 11,497.90. Mid-caps ended 1.38 per cent lower and small-caps closed 1.16 per cent down, continuing to underperform.

Besides, Foreign Institutional Investors (FIIs) have turned sellers over the last two sessions. FIIs had sold Rs 948.98 crore worth of stocks on Monday after a healthy buying last month.

"Investor sentiments were impacted owing to uninspiring March quarter earnings which suggest a show a slowdown in the Indian economy and a possible delay in the much-awaited revival in earnings. Debt-laden stocks including Jet Airways, DHFL and Zee Entertainment, came under renewed selling pressure," said Deepak Jasani of HDFC Securities.

Bharti Airtel gave up the morning gains to end 3.10 per cent lower despite posting 29 per cent jump in PAT in Q4FY19. Zee Entertainment and Reliance Industries were the other two major losers.

Scrips of Zee Entertainment Enterprises witnessed a sharp fall by over 10 per cent on the BSE during the intra-day trade before closing 4.88 per cent lower.