Benchmark indices crashed for the second day in a row as persistent weakness in the rupee and subdued cues from across Europe, compounded the fall in the last one hour of trade.
The Sensex ended the day with losses of 509 points, while the Nifty dived 150 points in trade. The rupee was last seen trading at 62.73, down 30 paise over Monday's close.
Today's loss means the Sensex has lost almost 900 points in two trading sessions. IT stocks managed to hold onto gains, following losses in the rupee. Among the gainers from the Nifty in trade were Tata Power, State Bank of India, Infosys and Mahindra and Mahindra.
Shares of FMCG companies were the hardest hit today, on fears that a falling rupee would increase input costs. Analysts have also been worried over the steep valuations accorded to some of these companies. Godrej Consumer, ITC, Marico and Hindustan Unilever were the hardest hit.
Among the few stocks that rose in trade was State Bank of India, following reports that the bank was planning to sell as many as 8 NPA accounts.