Mumbai: The BSE benchmark Sensex extended losses and fell by nearly 55 points in opening trade on Thursday to hit a two-year low of 15,645.22, as funds and retail investors offloaded their positions in the absence of any positive cue.

A weakening trend on other Asian bourses in line with overnight losses at the US market, also impacted the trading sentiment.

The 30-share BSE Sensex fell by 54.75 points, or 0.35 per cent, to trade at a fresh two-year low of 15,645.22.

Similarly, the wide-based National Stock Exchange Nifty index declined by 11.30 points, or 0.24 per cent, to trade at 4,695.15.

Brokers said the market sentiment remained distinctly bearish as funds and retail investors engaged in offloading stocks on concerns over high inflation, slowing growth and a depreciating rupee.

In addition, a weakening trend on the global markets on worries over slow growth also dampened the trading sentiment here.

In the Asia region, Hong Kong's Hang Seng index was trading 0.79 per cent lower, while Japan's Nikkei shed 1.51 per cent in morning trade on Thursday. The US Dow Jones Industrial Average lost 2.05 per cent in Wednesday’s trade.