The biggest faller in early trading was Indian-focused energy company Essar Energy after announcing a $500 million convertible bond issue.

The company saw share price drop by 4.4 per cent to 533p in early trading as the bond issue - due for maturation in 2016 - was announced.

The value of the convertible bond issue is equal to a 3.3 per cent of the company's issued shares.

Proceeds from the bond issuance will be used for acquisition of coal, oil and gas assets and could be used to refinance existing debt.

The bonds are expected to have a coupon of 3.75 per cent to 4.25 per cent payable semi-annually in arrears and will be convertible into ordinary shares.

The conversion price is expected to be set at a premium of between 30 per cent to 35 per cent average price of ordinary shares between launch and pricing.

The company said the issue size could be increased by up to $175 million. Deutsche Bank and JP Morgan Securities have agreed to underwrite the convertible bond issue.

GlaxoSmithKline also reported a 2.2 per cent drop in share price to 1,179p, as reports suggested that it could face a £2.2 billion legal bill over diabetes drug Avandia.

Experian also saw share price drop by 1.2 per cent to 766.5p despite reporting that it had returned to growth in all regions during the third quarter.

The biggest riser was miner Vedanta Resources, which saw share price rise by 3.2 per cent to 2,515p. Vedanta was joined at the top of the table by fashion group Burberry, rising 3.1 per cent to 1,092p and fellow miner Kazakhmys, increasing 2.7 per cent to 1,660p.