Benchmark indices fell sharply in trade, as global markets tanked, following a sharp fall in crude oil prices.
Comments by the International Energy Agency, that the world would drown in oil, only aggravated the fall in crude oil and stock markets.
The Sensex fell sharply by a huge 417 points, while the Nifty fell 125 points in trade, to the lowest levels since the Narendra Modi government took charge.
Commodity and mining stocks were hammered out of shape with NMDC and Coal India dropping to a new 52-week low.
Banking shares also plunged to a new 52-week low with stocks like State Bank of India, ICICI Bank, Canara Bank, Punjab National Bank and Bank of Baroda falling to a new 52-week low. Bajaj Auto and Wipro were the only shares from the Nifty that managed to stay resilient in a falling market.
Reliance Industries which reported a good set of numbers saw the biggest fall of more than 4 per cent. This dragged the markets even lower, given the heavy weightage of Reliance Industries in the Sensex and the Nifty. Banks like HDFC Bank, which normally does not drop sharply also fell, showing the extent of the damage.
Midcap stocks took the biggest pounding with the index losing nearly 4 per cent. Sun TV saw the biggest loss with the stock down nearly 10 per cent. JSW Energy, IDBI Bank, IFCI and several other stocks dropped more than 4 per cent in trade.
Meanwhile, the rupee scaled past the 68 mark for the first time since Sept 2013.