Equity benchmark Sensex plunged 709 points on Thursday, led by losses in Reliance Industries, HDFC Bank and ICICI Bank, as a selloff in global equities hit investor sentiment.
After touching a low of 33,480.42, the 30-share index settled 708.68 points, or 2.07 per cent, lower at 33,538.37.
Similarly, the broader NSE Nifty tanked 214.15 points, or 2.12 per cent, to close at 9,902.
SBI was the top laggard in the Sensex pack, dropping over 5 per cent, followed by Sun Pharma, Maruti, Bajaj Finance, Tata Steel, Axis Bank and ICICI Bank.
On the other hand, IndusInd Bank, Hero MotoCorp and PowerGrid were among the gainers.
According to Narendra Solanki, Head- Equity Research (Fundamental) at Anand Rathi, Indian market settled lower tracking negative global cues after the US Fed signalled likely delay in economic recovery and concerns about a second wave of coronavirus cases.
The US central bank kept its benchmark short-term rate at near zero, and said nearly all its policymakers foresee no rate hike through 2022.
The Fed also said it will keep buying bonds to maintain low borrowing rates and support the US economy mired in deep recession with high unemployment following the COVID-19 crisis.
Bourses in Shanghai, Hong Kong, Tokyo and Seoul settled up to 3 per cent lower.
Stock exchanges in Europe too opened with significant losses.
International oil benchmark Brent crude futures fell 2.85 per cent to $40.54 per barrel.
On the currency front, the rupee depreciated 20 paise to provisionally close at 75.79 against the US dollar.