Mumbai: India`s benchmark stock indices followed their Asian peers lower on Tuesday, after an overnight slump on the Wall Street led by technology stocks. The S&P BSE Sensex fell 300 points while the broader Nifty settled below the 10,700-mark.

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"With regard to the RBI board meeting, the market drew relief from the fact that the stand-off between the government did not escalate. However, it was more or less a status quo, damping sentiments," said Astha Jain, a senior analyst at Hem Securities.

All the 19 sectors on the BSE came under heavy selling pressure. The metal counters fell over 2 per cent, while healthcare, IT and TECK (technology, entertainment and media) declined over 1 per cent each. 

The Sensex settled down 300.37 points or 0.84 per cent at 35,474.51, from its previous close of 35,774.88. The Nifty50 lost 107.20 points or 1 per cent to finish at 10,656.20.

The Indian rupee jumped for a second day in a row against the dollar. It was last traded at 71.45 per dollar, 19 paise higher from the previous close of 71.64. The benchmark Brent Crude prices also eased to $66.36 per barrel.

According to analysts, the rupee`s recovery was in line with the gains across the emerging-market currencies, which likely bottomed out on November 13. 

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"Some investors were betting that the rate-hike cycle by the US Federal Reserve was petering out and hence the main reason for the weakening of the emerging market currencies may no longer be valid," said Deepak Jasani, Retail Research Head, HDFC Securities.