Global markets faced a huge sell-off as Margio Draghi, ECB, President disappointed the markets by not announcing an increase in the quantum of monetary expansion for the EU.
While he did extend the timeline for monetary easing, markets had expected him to increase the QE expansion every month.
The Sensex was trading with losses of 227 points, while the Nifty fell 73 points in trade. Except Cairn India, all of the Nifty stocks were trading in the red, with banking stocks seeing deep cuts.
Bank of Baroda, State Bank of India, Punjab National Bank and ICICI Bank dropped by 1 per cent each. The Tata Motors stock was resilient after the company's Jaguar Land Rover was reportedly examining bid worth millions of pounds to buy Britain's Formula One Grand Prix track, according to a media reports.
Apollo Tyres was trading lower after the company said that production operations at its plant near Chennai had been disrupted due to flooding.
IT stocks were a drag on the markets with TCS and Infosys seeing cuts of almost 2 per cent each. Meanwhile, Asian markets were trading with losses, with most of the markets down more than 1 per cent each. The rupee hit a 2-year low of Rs 66.95 to the US dollar.