Benchmark indices fell sharply in trade, as Oil hit a fresh 12-year low, leading to a sharp fall in oil and gas stocks.
Asian markets were trading weak with the Hang Sang down more than 3.75 per cent and other markets like the Strait Times and the Japanese Nikkei also down almost 2 per cent in trade.
Banking stocks also saw heavy selling pressure with State Bank of India falling to a new low of Rs 177 on the National Stock Exchange.
Axis Bank was down 3 per cent, ahead of its results to be declared later today. Midcap stocks were hammered out of shape with the index down a near 3 per cent in trade. Among the losers from the midcap space were JSW Energy, which lost a huge 5 per cent in trade, while other notable losers were Jindal Steel, Reliance Capital and IDBI Bank.
Meanwhile, the rupee opened trade weak at 67.67 to the dollar. Analysts say that the rupee could weaken even further in trade.