Pre-close: Sensex tumbles 240 points to 16,438

The Bombay Stock Exchange benchmark Sensex plunged by 239.87 points to 16438.01 in pre-close trade on Tuesday on brisk selling by funds on concern that record-high commodity prices and the US economic slowdown will erode earnings.

The 30-share Sensex, which recorded the second biggest fall of over 900 points on Monday, tumbled by 239.87 points to 16438.01 in pre-close trade.

The wide-based National Stock Exchange index, Nifty, also fell by 61.30 points to 4,891.70 after heavy-weight stocks in banking, capital goods, realty, metal and refinery segment fell sharply.

The fall in market was led by banking and refinery stocks as dollar weakened against leading currencies and crude continues to move above 100 dollars.