Sensex plunges nearly 400 points; Tata Power slumps

Reuters Market Eye - The BSE Sensex and the Nifty fall around 2 percent as the rupee hits a record low. Banks lead the fall on continued uncertainty about how long would the RBI keep its liquidity tightening measures as the rupee hits a record low.

HDFC Bank falls 3.8 4 percent, while ICICI Bank is down 3.6 percent.

Tata Power posts net loss of 1.15 billion rupees, falls nearly 13 percent.

Bharat Heavy Electricals falls 5.2 percent. The company's quarterly profit dropped 49 percent on sharply lower sales in its power and industry businesses in a slowing economy.