Mumbai: The BSE benchmark Sensex on Monday tumbled 302 points on heavy selling in blue-chips led by RIL and banking stocks on investor anxiety over corporate earnings amid depreciating rupee and weak global markets.

The Sensex, which lost 244 points in the previous session, fell further by 302.31 points to 16,151.45 on continued outflow of foreign funds.

A weak trend in the Asian region and lower openings in Europe also dampened the market sentiment, as Greece said it would not meet the target for reducing its massive deficit, adding to the pressure on the euro-zone crisis.

The National Stock Exchange index Nifty dropped 93.75 points to 4,849.50, after touching the day's low of 4,823.90.

Brokers said high inflation and rising commodity prices have added to fears of interest rate hikes.

They said the country imports more than 75 percent of its fuel demand, and buys commodities including pulses, edible oils, natural rubber and some grades of steel from overseas. Thus, the weak rupee spurs the country's import bill.

The rupee weakened one percent to 49.49 per dollar after losing 8.7 percent last quarter.

The two heaviest stocks, with 20 percent weight on the index -- Reliance Industries and Infosys -- suffered heavy losses. RIL lost 2.49 percent and Infosys 2.27 percent.

ICICI Bank fell 4.12 percent, SBI 2.53 percent and HDFC Bank by 1.88 percent.

The realty sector index suffered the most, falling 4.59 percent to 1,682.06, followed by metals index - 4 percent to 10,555.54. The banking index lost 2.82 percent to 10,544.72.