Equity benchmark Sensex plunged 1,159 points on Thursday following an across-the-board selloff as monthly derivatives expired amid a weak trend in global markets.
The 30-share index tanked 1,158.63 points or 1.89 per cent to close at 59,984.70. Similarly, the broader NSE Nifty plummeted 353.70 points or 1.94 per cent to 17,857.25.
ITC was the top loser in the Sensex pack, tumbling over 5 per cent, followed by ICICI Bank, Kotak Bank, Axis Bank, SBI and HDFC Bank.
On the other hand, IndusInd Bank, L&T, UltraTech Cement and Asian Paints were among the gainers.
"Domestic equities witnessed heavy selloff with high volatility mainly led by sharp correction in heavyweight financials and IT, which wiped out around Rs 4.5 lakh crore from investors wealth," said Binod Modi, Head - Strategy at Reliance Securities.
All key sectoral indices fell sharply, with Nifty PSU Bank falling over 4 per cent. In addition to weak global cues, unwinding of long positions especially in financials on F&O expiry, which had seen a sharp rally in recent period were the prime reasons for the sharp market correction, he added.
Elsewhere in Asia, bourses in Shanghai, Hong Kong, Seoul and Tokyo ended with losses.
Stock exchanges in Europe were also trading in the red in mid-session deals.
Meanwhile, international oil benchmark Brent crude slipped 1.11 per cent to USD 82.94 per barrel.