Domestic equity benchmark Sensex slumped 335 points on Thursday, dragged by losses in financial stocks amid negative cues from global markets.
The 30-share BSE benchmark ended 335.06 points or 0.88 per cent lower at 37,736.07; while the NSE Nifty tumbled 100.70 points or 0.90% to 11,102.15.
IndusInd Bank was the top laggard in the Sensex pack, falling over 5%, followed by HDFC, Axis Bank, PowerGrid, SBI, Bajaj Finserv and Bharti Airtel.
On the other hand, Sun Pharma, Maruti, Infosys and Reliance Industries were among the gainers.
According to Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi, Indian markets opened in green following mixed global cues as U.S. Fed kept rates on hold.
However, during the afternoon session, market sentiment turned cautious as doubts rose on further deterioration of the asset quality of financial companies. The selloff was led by banks and financial stocks, he added.
Markets also turned choppy on the expiry of July derivatives, traders said.
Bourses in Shanghai, Hong Kong and Tokyo ended in the red, while Seoul settled on a positive note.
Stock exchanges in Europe were trading with losses in early deals.
Global oil benchmark Brent crude was trading 1.27% lower at $43.53 per barrel.
In the forex market, the rupee fell 4 paise to close at 74.84 against the U.S. dollar.