SYDNEY - Bermudian yacht Tyco was leading the Sydney-Hobart race earlier today after a violent storm slammed into the fleet, knocking favourite Nicorette on its side and forcing seven yachts out.

Volvo-class 60 footers competing in the 630-nautical mile Sydney-Hobart as part of the third leg of their round-the-world race filled the top six places after a torrid opening stretch down Australia's east coast.

Tyco maintained her overnight lead as the fleet battled strong south-westerly winds and was just ahead of German-backed illbruck at a scheduled early morning radio position report yesterday, race officials said.

Tyco was forced out of the second leg of the round-the-world race with a broken rudder.

Illbruck won the first two legs of the Volvo race from Southampton and Cape Town and was ahead of Swedish entry Assa Abloy as the fleet headed for the notoriously rough Bass Strait between the Australian mainland and the island state of Tasmania.

Nicorette was leading when she was knocked on her side during what skipper Ludde Ingvall likened to a “twister” and what race officials described as a water spout or mini tornado.

Her crew dropped all sails in a bid to minimise damage but surrendered her lead to the Volvo boats.