Sensex falls over 300 points; Tata Power plunges 7 pct

Reuters Market Eye - The BSE Sensex falls around 1.7 percent and the Nifty is down 1.9 percent. 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 4 percent, while ICICI Bank is down 3.5 percent.

Bharat Heavy Electricals falls 4 percent. The company's quarterly profit dropped 49 percent on sharply lower sales in its power and industry businesses in a slowing economy.

Tata Power posts net loss of 1.15 billion rupees, falls 7.5 percent.