MUMBAI (Reuters) - The BSE Sensex and Nifty fell over 2 percent on Thursday as blue chips slumped on worries foreign investors may trim positions on risk aversion after Saudi Arabia launched air strikes in Yemen.
Foreign investors have been heavy buyers of Indian shares since early 2014, making any significant exits a particular risk to Indian markets.
The BSE Sensex closed 2.3 percent lower while the Nifty ended down 2.2 percent.
Blue chips heavily owned by foreign investors led the falls. Housing Development Finance slumped 5.2 percent, while ICICI Bank lost 2.8 percent.
(Reporting by Abhishek Vishnoi; Editing by Anand Basu)