The Indian rupee hit a record low of 65.66, a drop of 136 paise over Monday's close. The Sensex shed almost 500 points on sustained selling pressure as the currency and worries over military intervention in Syria weighed on sentiments. The passage of the Food Security Bill which will add to the fiscal deficit also weighed on sentiments.
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 almost 6 per cent. Axis Bank continued to slide lower for the second day in a row losing 5 per cent, while ICICI Bank was down 3 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 11 per cent as the company was dropped from the MSCI index.
Heavyweights, ITC and Reliance did not lend any support to the battered markets dropping almost 2 per cent in trade.
Software stocks were the only ones to hold onto gains with Infosys and TCS both gaining ground in trade, largely on the back of the falling rupee.
Mid cap stocks were also badly battered in trade with Adani, Aditya Birla Nouvo and Unitecg all down 4 per cent each.
Meanwhile, most of Asia was trading deeply in the red with notable losers being the Indonesian Jakarta Composite which lost almost 3 per cent in trade.