The S&P BSE Sensex and NSE Nifty 50 Indexes extended losses led by declines in HDFC twins, Reliance Industries, Maruti Suzuki, Larsen & Toubro, Kotak Mahindra Bank and ITC. Earliers in the day, Sensex and Nifty opened on a weak note taking cues from other Asian markets as US-Iran tensions and anxieties over Sino-US trade talks left markets in the region struggling to match the euphoria on Wall Street over a possible US interest rate cut next month. The Sensex fell as much as 423 points and the NSE Nifty 50 Index fell below 11,750.

As of 2:28 pm, the Sensex traded 0.9 per cent or 356 points lower at 39,245 and the NSE Nifty 50 Index was down 0.8 per cent or 94 points at 11,738.

All sector gauges barring the Nifty PSU Bank index were trading lower led by the Nifty Pharma and Nifty Auto Indexes 1.3 per cent decline.

Yes Bank was top loser in the Nifty 50 basket of shares, the stock fell 4 per cent to Rs 110.10. Maruti Suzuki, Bharti Infratel, HDFC, Sun Pharma, Hero MotoCorp, Hindustan Unilever, Kotak Mahindra Bank, Larsen & Toubro and Dr Reddy's Labs also fell between 1.3 and 3.2 per cent each.

On the other hand, Indiabulls Housing Finance, UPL, Hindalco, Tech Mahindra, Ultratech Cement, State Bank of India and IndusInd Bank were among the gainers.