Mumbai: Benchmark indices Sensex and Nifty declined for the third day on Thursday as fresh tariff threats, weak Asian markets and foreign fund outflows hurt investor sentiment.

The 30-share BSE Sensex dropped 203.22 points or 0.27 per cent to settle at 75,735.96. During the day, it tanked 476.17 points or 0.62 per cent to 75,463.01. The NSE Nifty dipped 19.75 points or 0.09 per cent to 22,913.15. Selling in frontline stocks HDFC Bank, ICICI Bank, ITC and Maruti dragged down the key indices. In the three straight days to Thursday, Sensex dipped 260 points while Nifty skidded 46 points.

Broader markets, however, bucked the trend with midcap and smallcap indices gaining more than 1 per cent. From the Sensex pack, HDFC Bank fell the most by 2.35 per cent. Maruti, Tech Mahindra, HCL Tech, ITC, ICICI Bank, Kotak Mahindra Bank and Bajaj Finance were among the major laggards.