The 30-share BSE Sensex closed at 15,790.93, down 434.02 points or 2.68 pc.
The 50-share NSE Nifty fell 2.61 pc or 126.70 points, to settle at 4,718.65, after seeing day's low of 4,692.35.
Biggest Nifty losers were Ranbaxy Laboratories (-6.42 pc), Jaiprakash Associates (-6.25 pc), Hindalco Industries (-5.88 pc), Tata Steel (-5.49 pc) and SAIL (-4.98 pc).
European markets were trading 1.1-2.3 pc lower while US index futures were flat.
Asian markets witnessed huge selling pressure. Taiwan Weighted slipped 4.3 pc. Hang Seng, Kospi, Jakarta and Nikkei lost around 3 pc each. Shanghai was down 1.87 pc and Straits Times down 2.24 pc.
Sensex down over 400 pts; Infy, ONGC dip
At 12.42 pm, the Nifty was trading at lowest point of the day and was inching towards the 4700 mark on the downside.
The Sensex was down 425.01 points or 2.62 pc at 15799.94, and the Nifty was down 134.55 points or 2.78 pc at 4710.80.
The breadth of the market also worsened further. About 421 shares advanced, 2487 shares declined, and 237 shares were unchanged.
The BSE realty and metal index were down more than 4 pc each.
Heavy selling was also seen in banks, oil&gas, IT, capital goods, power and auto stocks. ONGC, Reliance Industries, Infosys, SAIL and SBI were dragging the Sensex down.
In the largecap space, Hindustan Unilever and Ambuja Cements were the only gainers on the Nifty.
On the losing side, Ranbaxy Labs, Tata Steel, Hindalco, Axis Bank and Jaiprakash Associates were down 4-5.5 pc.
Nifty down 100 pts; realty, metal, banks slide
At 11.28 am, the Nifty was struggling to past even the 4750 mark and was down over 100 points.
The Sensex was down 380.55 points or 2.35 pc at 15844.40, and the Nifty was down 114.20 points or 2.36 pc at 4731.15.
About 457 shares advanced, 2430 shares declined, and 258 shares were unchanged.
Heavy selling was seen in realty, metal, banks, capital goods, oil&gas, auto & power stocks.
All the BSE sectoral indices were down more than 1 pc. The BSE Midcap and Smallcap index were down 2.54 pc and 2.78pc respectively. The BSE IPO index also lost 2 pc.
In the largecap space, Hindustan Unilever was the only gainer on the Sensex. Tata Steel, Jaiprakash Associates, ICICI Bank, ONGC and Hindalco were down 2-4pc.
Sensex loses over 300 pts; RIL, DLF dip
The benchmark Nifty crashed in early trade following free-fall in US and Asian markets on European debt worries.
At 9:02 am, the Nifty was trading at 4737, down 108 points and the Sensex was at 15877, down 347 points.
The market breadth was very weak; about 23 shares advanced while 820 shares declined on the NSE.
Infrastructure, realty, metal post CRB Index loses 2 pc, oil & gas and banking were the major losers
Among the frontliners, Suzlon, Tata Steel, Jaiprakash Associates, SAIL, DLF, Ambuja Cements, Tata Motors, DLF, Sterlite, ICICI Bank, Ranbaxy, IDFC, M&M and L&T were the major losers.
Asian markets were trading lower. Shanghai, Nikkei, Hang Seng, Taiwan, Straits Times, Kospi and Jakarta fell 1.5-3.5 pc. SGX Nifty was down 2.6 pc.