The BSE benchmark Sensex dipped below 16,000 points level, the lowest in nearly two months, by losing about 290 points in opening trade as foreign funds took to frantic selling triggered by a meltdown in the global markets.

Also, Thursday being the last session of monthly expiry in the derivatives segment, squaring-up of positions by market players further dampened the trading sentiment.

The 30-share index fell by 289.66 points to trade below 16,000 points level at 15,993.83 points in opening trade. The level last seen on 7th September.

The Sensex had lost over 527 points in the past three sessions.

The wide-based NSE index Nifty too dipped below 4,800 points. It was trading 87.75 points down at 4,738.40 points.

Brokers said continued profit-taking by funds and investors, driven by overnight losses in the US markets after a disappointing consumer confidence report and weak trend in early trade on other Asian bourses also cast their shadows on the trading sentiment here.

Meanwhile, the the Hong Kong’s Hang Seng index was down 2.50 per cent. The US Dow Jones Industrial Average ended 1.21 per cent down on Wednesday.