The Sensex and the Nifty fell sharply in trade as worries over interest rate hikes in the US hit sentiments.
Banking stocks fell sharply in trade with stocks like Axis Bank, ICICI Bank, Punjab National Bank and State Bank of India recording sharp losses.The Sensex was down a huge 434 points, while the Nifty was down 134 points in trade.
Software stocks were weak after not so encouraging guidance from India's largest IT player TCS. The stock was down more then 2 per cent along with Infosys which also lost ground.
Jindal Steel gained a huge 7 per cent after the company successfully bid for one of the coal blocks. Other gainers in trade were DLF and Coal India.
Tech Mahindra and Wipro were also weak following poor guidance from TCS. Mid cap stocks also saw some selling pressure with Jubilant Foodworks and Jain Irrrigation among the losers in trade.
Real estate stocks which saw buying in the last few days after the RBI cut interest rates gained ground. Among the losers in trade were Prestige Estates and Brigade Enterprises.
Meanwhile, markets across Asia were trading with losses following worries that there maybe an interest rate hike in the US. Among the markets that were weak included the Hong Kong's Hang Sang and the Shanghai Composite.