Problems in China continued to haunt global markets with Asian indices sharply lower and Indian markets sinking to a new 14-month low. The rupee too fell sharply as investors remained worried that poor Chinese data could spark a currency war.
Metals and banking stocks dragged the indices lower with Tata Steel and Vedanta leading losers. Banking stocks hit fresh 52-week lows with ICICI Bank, State Bank of India and PNB falling to breach one year low levels.
Infosys was the only stock from the Sensex that managed to gain ground. The company is set to declare its results later this week.
Shares in Sun TV fell a huge 6 per cent after reports of the ED filing a charge sheet in the Aircel-Maxis money laundering case before 2G court.
Spice Mobility's stock was up 4 per cent after arm Spice Digital acquired a 22.54 per cent stake in Sunstone Eduversity.
Mid cap shares saw deeper cuts with the index falling almost 1.7 per cent. The index was largely dragged down by the banking names including the likes of Canara Bank, Syndicate Bank, Karnataka Bank and Oriental Bank of Commerce.
Among the small cap stocks Time Technoplast rallied 5 per cent after the company launched LiteSafe plastic composite cylinders for LPG.
Meanwhile, markets across Asia saw sharp cuts, over worries that a China slowdown could spark a currency war.