The Bombay Stock Exchange's Sensex plunged over 207 points today on emergence of heavy selling by funds and investors, following reports that a leading European bank has freezed accounts of three mutual funds.

Oil prices continued lower in Asian trade on profit-taking and an improved outlook for energy supplies, while dealers said that the market would be looking ahead to the weekly report on US stockpiles due on Wednesday.

The Bombay Stock Exchange benchmark Sensex climbed over 62 points to close at record high of 15,794.92 on Tuesday on the back of buying by funds in heavy-weight stocks, particularly in capital goods, IT and PSU sectors.

The European Union has begun trade talks with South Korea and the Association of Southeast Asian Nations (ASEAN). As Ron Corben reports from Bangkok, analysts say the European Union's push in Asia follows the example of the United States and other nations seeking trade deals in the fast-growing Asia-Pacific region.

Oil prices have mixed in Asian trade as market focus shifted from the recent attacks on the oil industry in Nigeria to the weekly US energy inventory data.