The S&P BSE Sensex plunged by over 800 points while the NSE Nifty50 lost over 300 points.
According to analysts heavy selling pressure was witnessed in oil and gas auto and healthcare counters.
Index-wise the wider Nifty50 of the National Stock Exchange closed at 10 599.25 points lower 259 points or 2.39 per cent from its previous close.
The S&P BSE Sensex which opened at 35 820.53 points closed at 35 169.16 points down 806.47 points or 2.24 per cent from its previous close of 35 975.63 points.
It touched an intra-day high of 35 820.53 points and a low of 35 022.12 points.
--IANS ravi-rv/tsb/nir