Benchmark indices dropped sharply, as global markets nosedived with the Japanese Nikkei falling a huge 5 per cent, even as many Asian markets remained closed.
Weak overnight cues from the US and Europe were largely responsible for the drop. Fears of a global recession pushed indices lower with investors flocking to a safe haven asset like gold, which notched its 8th straight day of gain.
Punjab National Bank was the biggest loser from the Nifty space, after the bank's results were a big disappointment. The stock fell a huge 5 per cent. This also dragged other PSU banking stocks like Bank of Baroda, Oriental Bank and Union Bank lower.
Shares in Maruti lost ground after the Yen strengthened against the dollar. From the Midcap space Justdial was a big loser falling a huge 7 per cent. The stock hit a new 52-week low in trade.
Among the few Nifty stocks that gained ground in trade were Lupin, Sun Pharma and ONGC. Meanwhile, European markets which were trading higher at the start of trading, soon slipped into the red. The German DAX, French CAC and the UK's FTSE were all higher.