The Sensex ended the day lower by 353 points, while the Nifty closed lower 108 points.
Markets across Asia saw a severe drop with the Strait Times closing almost 3 per cent lower, while Hong Kong was down more than 2 per cent.
Shares of Tata Steel rose after the company's consolidated net profit jumped over two-fold to Rs 763 crore in the first quarter.
Tata Steel said it has sold 2.18 per cent of its stake in group firm Titan to Tata Sons for over Rs 637 crore, a move aimed by the steel maker to monetise its non-core and listed assets, reports PTI.
The stock ended the day at Rs 249, higher by 1.05 per cent on BSE. It touched an intraday high of Rs 457 during the trade.
Titan Company shares ended the day at Rs 330, higher by 0.56 per cent on BSE. It touched an intra-day high of Rs 333 during the trade.
Shares of Nestle India fell by almost 5 per cent dueing intra-day after the government filed a class action suit against the company seeking about Rs 640 crore in damages for alleged unfair trade practices, false labelling and misleading advertisements. The stock recovered in a late trade.
The stock ended the day at Rs 6320, marginally higher by 0.24 per cent on BSE. It touched an intraday high of Rs 6008 during the trade.
Shares of Sun Pharma today rose by over 5 per cent after the company posted better-than expected sales for the first quarter of the current fiscal.
The stock ended the day at Rs 868, higher by 3.11 per cent on BSE. It touched an intraday high of Rs 884 during the trade.
The company fell after Novelis which has 50 per cent share in the company reported weak results for this quarter.
The stock ended the day at Rs 95.70, lower by 7.40 per cent on BSE. It touched an intraday low of Rs 95.50 during the trade.