Tracking the global weakness, Indian equities opened gap-down on Tuesday. Asian stocks plunged today on reports that North Korea is readying its military to prepare for war, with the US planning to conduct joint anti-submarine exercises with South Korea. The Kospi Index plunged 3.2 percent. Nikkei 225 lost 2.3 percent.

Monday, European stocks fell on concern Europes debt crisis may spread after the International Monetary Fund said Spains banking sector remains under pressure.

Back home, National Stock Exchanges Nifty was at 4881.20, lower by 62.75 points or 1.27 per cent. The 50-share index opened at 4945.30 versus Mondays close of 4943.95. The index touched a low of 4874.90 from a high of 4946.60.

Sensex was at 16,263.42, down 206.13 points or 1.25 per cent. The Bombay Stock Exchanges sensitive index started the day at 16,444.57 against the previous close of 16,469.55. The 30-share index sank to a low of 16,254.04 in the early minutes.