Equity benchmark Sensex dropped over 250 points in early trade on Friday tracking losses in banking and financial stocks amid negative cues from global markets.

The 30-share BSE index was trading 281.86 points or 0.55 per cent lower at 51,042.83.

Similarly, the broader NSE Nifty was quoting 87.25 points or 0.58 per cent down at 15,031.70.

PowerGrid was the top loser in the Sensex pack, shedding around 3 per cent, followed by ICICI Bank, NTPC, Bajaj Auto, Maruti, Bajaj Finance and SBI.

On the other hand, HUL, Reliance Industries, Bharti Airtel, L&T, M&M and HCL Tech were among the gainers.

In the previous session, Sensex ended 379.14 points or 0.73 per cent lower at 51,324.69, and Nifty dropped 89.95 points or 0.59 per cent to finish at 15,118.95.

Foreign institutional investors were net buyers in the capital market as they purchased shares worth Rs 903.07 crore on Thursday, as per exchange data.

According to Binod Modi Head-Strategy at Reliance Securities, domestic equities do not look to be inspiring at the moment. "A pullback in broad indices was quite visible for the last two days. However, investors continued to lap-up midcap and smallcap stocks led by improved earnings outlook."

US markets finished lower as weaker jobless claim data and risk of potential rise in inflation amid elevated commodity and energy prices weighed on sentiments.

Elsewhere in Asia, bourses in Shanghai, Hong Kong, Tokyo and Seoul were trading on a negative note in mid-session deals.

Meanwhile, the global oil benchmark Brent crude was trading 1.64 per cent lower at USD 62.88 per barrel.