Benchmark indices fell in trade as Asian markets nosedived led by a 4 per cent fall in the Shanghai Composite, a 4 per cent drop in the Hong Hong's Hang Sang and a 2 per cent fall in the Kopsi. All other markets including the Australian and the Japanese markets were trading sharply lower.
The Sensex was trading with losses of 275 points, while the Nifty dropped 88 points in trade. Leading the set of losers in early trade were IT Stocks with Infosys, TCS and Tech Mahindra among the top losers.
Check top Sensex gainers and losers here
Banking stocks were the hardest hit with HDFC Bank, IndusInd Bank, Yes Bank and SBI among the top losers. Kotak Mahindra Bank and Federal Bank fell by 50 per cent after the shares of both the company's went ex-bonus.
High beta mid cap stocks also saw deep cuts with GMR Infra, J P Associates and Syndicate Bank among the top losers in trade. Titagarh Wagons was up 6 per cent after the company got an industrial licence from DIPP for defence production.
Meanwhile, markets across Asia were deeply in the red as concerns over Greece continue to mount.