Mumbai, Dec 10 (IANS): The benchmark Sensex closed 248 points lower on Tuesday while Yes Bank lost over 10 per cent ahead of its crucial board meeting. There was a broad based sell-off witnessed in the market with Nifty Midcap and Nifty smallcap down 1.3 per cent and 1.1 per cent respectively.

Yes Bank on Tuesday postponed the decision to approve or decline the binding offer of $1.2 billion -- 60 per cent of the total capital the bank aims to raise -- submitted by mysterious investor Erwin Singh Braich.

Yes Bank, however, after its 5-hour board meet on Tuesday said that it is willing to "favourably consider the offer of $500 million of CitaxHoldings and Citax Investment Group and the final decision regarding allotment to follow in the next board meeting.."

Besides, a decline in the index heavyweights -- TCS, SBI, HDFC and Reliance Industries--exacerbated the fall.

All sectors closed in red with Media being the biggest loser followed by PSU Banks, IT and Metals. The Sensex lost 247.55 points or 0.61 per cent to 40,239.88 after it opened slightly higher. The broader Nifty fell 80.70 points or 0.68 per cent to 11,856.80.

"Post the Chinese local media report that a trade deal was unlikely to be signed before December 15, market has turned vigilant as the next round of US tariffs on Chinese imports is due to take effect from that date," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.

"Selling in domestic market accentuated today as investors turned more cautious over double whammy of inflationary pressure and weak growth," said Vinod Nair, Head of Research Geojit Financial Services.

"Another factor which is impacting market is the likelihood of maintenance of status quo on rates by both USFED and ECB. Given domestic premium valuation of key indices, market is highly susceptible for near term volatility," Niar added.