Equity benchmark Sensex on Monday crashed about 1,546 points to sink below the 58,000-level due to across-the-board selloff tracking sluggish global markets.
Besides, persistent foreign capital outflows continued to affect the market sentiment, traders said.
Benchmark indices started the session on a weaker note and the selling intensified during afternoon trade, with almost all sectoral indices ending in the red.
The 30-share BSE Sensex ended 1,545.67 points or 2.62 per cent lower at 57,491.51. Similarly, the NSE Nifty slumped 468.05 points or 2.66 per cent to 17,149.10.
All Sensex components ended in the red.
Bajaj Finance was the top loser, shedding around 6 per cent, followed by Tata Steel, Bajaj Finance, Wipro, Tech Mahindra, Titan, Reliance Industries and HCL Tech.
"Indian markets opened negative following mixed Asian market peers as investors look ahead to US Fed meeting and rising geopolitical uncertainty. During the afternoon session, they further sold off as indices fell well below psychologically crucial levels.
"The broader indices too capitulated to selling pressure and were trading with heavy losses of around 3 per cent each. Sentiments were so fragile that traders paid no heed toward RBI’s data showing that the country's foreign exchange reserves grew by $2.229 billion to $634.965 billion in the week ended January 14,” Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi Shares & Stock Brokers, said.
Elsewhere in Asia, bourses in Hong Kong and Seoul ended with losses, while Tokyo and Shanghai were positive.
Equities in Europe were witnessing intense selling pressure in mid-session deals.
Meanwhile, international oil benchmark Brent crude rose 0.32 per cent to $88.17 per barrel.
Foreign institutional investors (FIIs) remained net sellers in the capital market, as they sold shares worth Rs 3,148.58 crore on Friday, according to stock exchange data.
