The Indian market extended losses around noon on Tuesday with the BSE Sensex at 36,875.44, down 475.35 points and the Nifty at 10,883, down 140.25 points. All Nifty50 sectoral indices were trading in the red with major losses except Nifty IT.

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The Nifty PSU Bank index has fallen 3.67 percent, and remains the worst performer despite the government's backing. Meanwhile, Tech Mahindra, Britannia, HCL Technologies, TCS and Hero MotoCorp were the top gainers while UltraTech Cement, HDFC, ICICI Bank, Tata Motors and Indian Oil Corporation were the major laggards.

The Nifty Bank index slipped more than 1 percent on Tuesday after Finance Minister Nirmala Sitharaman announced the merger of PSU banks last week. The merger of 10 state-owned banks into four will strengthen the debt-laden sector and ensure stronger balance sheets, the minister said in the announcement made after market hours on Friday.

Meanwhile, global stocks dropped on Tuesday, hurt by US-China trade frictions while the British pound fell to its lowest since January 2017 amid political uncertainty as Prime Minister Boris Johnson tried to stymie lawmakers' efforts to stop a no-deal Brexit.

MSCI's broadest index of Asia-Pacific shares outside Japan shed 0.7 percent. India, closed on Monday, led losses, with the benchmark dropping 1 percent following worse-than-expected economic growth data on Friday.

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First Published:Sept 3, 2019 1:59 PM IST