Benchmark BSE Sensex tumbled 566 points to settle below the 60,000-level on Wednesday, dragged down by heavy selling in banking and IT stocks amid weak global trends.
The 30-share BSE barometer tanked 566.09 points or 0.94 per cent to finish at 59,610.41. During the day, it plunged 666.66 points or 1.10 per cent to 59,509.84.
The broader NSE Nifty declined by 149.75 points or 0.83 per cent to settle at 17,807.65.
From the 30-share pack, HDFC Bank, HDFC, HCL Technologies, Tech Mahindra, Infosys, TCS, M&M, Kotak Mahindra Bank, Axis Bank were the major laggards.
In contrast, NTPC, Tata Steel, Power Grid, Bharti Airtel, Nestle and Larsen & Toubro were among the gainers.
"Domestic equities moved in tandem with US markets to close lower, fuelled by investors' expectation of a stricter interest rate hike by Fed," according to Mitul Shah, Head Of Research at Reliance Securities.
On Tuesday, the BSE Sensex slumped 435.24 points or 0.72 per cent to finish at 60,176.50. Similarly, the NSE Nifty tumbled 96 points or 0.53 per cent to 17,957.40.
Meanwhile, international oil benchmark Brent crude gained 0.93 per cent to USD 107.6 per barrel.
Elsewhere in Asian markets, bourses in Hong Kong, Tokyo and Seoul settled lower, while Shanghai was in the green. Indices in the US also ended on a lower note on Tuesday.
Foreign portfolio investors bought shares worth Rs 374.89 crore on Tuesday, according to stock exchange data.