Sensex drops 240 points to its lowest close since Dec. 8, worries over corporate earnings deepen

Auto majors Mahindra & Mahindra and Tata Motors slipped 4.65 percent and 2.54 percent respectively on worries that demand slowdown would impact their earnings.

Among blue-chip metal stocks aluminium makers Hindalco Industries and Sterlite Industries dropped 4.05 percent and 2.98 percent respectively while world's sixth largest steel producer Tata Steel eased 2.74 percent.

Other major losers were Jaiprakash Associates (down 3.98 percent), ONGC (down 3.96 percent) and BHEL (down 3.86 percent).

Market leader in India's auto industry, Maruti Suzuki led the gainers pack, soaring 1.68 percent to close at Rs.510.75. Other gainers were Tata Power (up 0.50 percent), Satyam Computer Services (up 0.41 percent), Ranbaxy Laboratories (up 0.30 percent) and Grasim Industries (up 0.28 percent).

Among the sectoral indices, all except Healthcare (up 0.50 percent) closed in the red. The worst performers were IT (down 3.92 percent), Realty (down 3.82 percent) and Consumer Durables (down 3.58 percent).

The BSE Midcap and Smallcap indexes fell 1.24 percent and 1.43 percent to close at 3106.68 and 3548.54 respectively.