Sensex down around 300 points; RIL down 2 percent

The BSE Sensex falls around 300 points, erasing its gains for the year, while the Nifty is down around 90 points. Worries over an early end to the U.S. stimulus, India's record current account deficit and a depreciating rupee weigh.

Banks fall after RBI issued draft guidelines that would require banks to make higher provisions and increase risk weights on exposure to companies that have unhedged foreign-currency exposure.

State Bank of India falls 3.5 percent and HDFC Bank(HDBK.NS) is down 1.2 percent.

Stocks hurting Sensex - RIL and HDFC down 2 percent, HDFC Bank down 2 percent.

BSE realty index down 4.5 percent. Unitech falls 8.6 percent.