The Sensex was trading lower by 207 points, while the Nifty slipped 67 points in trade today, as the rupee fell by 106 paise and was last trading at 65.36.
Almost all of the Nifty stocks were trading in the red with notable losers being from the banking and finance space with HDFC and HDFC Bank in particular seeing sharp cuts of more then 3 per cent. Axis Bank continued to slide lower for the second day in a row losing 2 per cent, while ICICI Bank was down 1.88 per cent.
Metal stocks which had seen a spectacular rally in the last few trading sessions failed to lend any support to the markets. Notable losers from the space were Sesa Goa, Tata Steel and Hindalco. IDFC plunged more then 6 per cent as the company was dropped from the MSCI index.
Software stocks were in the limelight and managed to hold steady. Notable gainers from the space were Infosys and TCS.
Heavyweights, ITC and Reliance were also down more then 1 per cent dragging indices lower. Real estate stocks were also hit badly with DLF dropping more then 2 per cent, Godrej Properties falling 3 per cent and Sobha Developers also falling 2 per cent.
Meanwhile, most of the Asian markets were trading in the red following worries over Syria. The Chinese Shanghai Composite, the Hong Kong's Hang Sang and the Japanese Nikkei were all trading lower.