Equity benchmark Sensex dropped 166 points on Tuesday, tracking losses in index majors Reliance Industries, ITC and Kotak Bank amid a negative trend in global markets.

The 30-share index declined 166.33 points or 0.29 per cent to end at 58,117.09. Similarly, the Nifty fell 43.35 points or 0.25 per cent to 17,324.90.

ITC was the top loser in the Sensex pack, shedding nearly 3 per cent, followed by Bajaj Finance, Kotak Bank, Bharti Airtel and Reliance Industries.

On the other hand, PowerGrid, Axis Bank, Nestle India and Dr Reddy's were among the gainers.

The domestic market was impacted by negative sentiments from other Asian markets as traders showed concern about WHO statement on Omicron variant of COVID-19 coupled with Federal Reserve policy meeting week ahead, said Likhita Chepa, Senior Research Analyst, Capitalvia Global Research.

Elsewhere in Asia, bourses in Shanghai, Tokyo, Seoul and Hong Kong ended with losses. Stock exchange in Europe were, however, trading on a positive note in mid-session deals

Meanwhile, international oil benchmark Brent crude fell 0.26 per cent to USD 74.20 per barrel.