The 50-share Nifty index plunged to a low of 5,046.80 before closing at 5,059.45, a net loss of 93.80 points, or 1.82 per cent, over its last close.
Overseas cues impacted the trading sentiment here after overnight sharp fall in financial markets across the globe as Federal Reserve Chairman Ben Bernanke did not unveil any new strong stimulus measures to steer the ailing economy that dampened investors confidence.
Trading commenced on a flat note on the backdrop of gloomy global sentiment and kept falling as the session progressed with no buying support emerging.
The slide deepened further in afternoon trade after the weak European opening with selling spreading across the board.
Financials were the most hit followed by technology, oil and gas, capital goods, steel and commodity.
RCom, Ambuja Cement, Hindalco, Sterlite Industries, SAIL, Reliance Infra, JP Associates, Reliance Capital, Axis Bank and Grasim were the top losers from the Nifty.
However, Hindustan unilever and Bajaj Auto managed to end in positive terrain.
Turnover in cash segment rose to Rs 12,129.28 crore from Rs 11,358.75 crore yesterday. A total of 7,637.93 lakh shares changed hands in 61,83,227 trades. The market capitalisation stood at Rs 60,07,476 crore.