Benchmark indices ended the day weak, as worries grew over the possibility of Britain exiting the EU.
Polls conducted by the Independent showed a 10 per cent swing in favour of an exit. There are worries that should UK exit the EU, it could even lead to a gradual disintegration of the EU.
The Sensex ended the day with losses of 238 points, while the Nifty dropped 59 points trade.
Most of the European markets saw deep slides with the German Dax, down almost 1.41 per cent, while other notable losers in trade were the UK's FTSE and the French CAC.
Among the top gainers in trade was Dr Reddy's Labs, which gained after the company said that it had acquired the products portfolio from Teva.
Among the Nifty stocks that saw maximum losses in trade was ICICI Bank, which fell almost 4 per cent in trade.
Shares in Fortis Healthcare fell 3 per cent after the Directorate General of Health Services (DHS) asked the company to deposit Rs 503.4 crores.
Midcap stocks also saw deep cuts with banks once again being at the forefront of these losses. Federal Bank dropped 4 per cent, while Jindal Steel and GMR were the other losers.
However, Tata Global had a good day and jumped 4 per cent.