After a positive start in the morning trade, market indices saw a significant slump during closing trade on Tuesday.
BSE's Sensex closed 429.58 points lower at 33,317.20, while Nifty saw a 109.60-point decline at 10,249.25.
Shares of Adani Enterprises saw an eight percent dip, while those of TVS Motor Company, M&M, Maruti Suzuki, Bajaj Auto and MRF were down by one to three percent.
Furthermore, sectoral indices traded in red, with the public sector unit (PSU) bank index down by 2.5 percent, after ICICI Bank chief Chanda Kocchar and Axis Bank managing director Shikha Sharma were summoned for interrogation by the Serious Fraud Investigation Office (SFIO) in connection with the 1.77 billion dollar Punjab National Bank (PNB) fraud.
Earlier in the day, the stock markets rebounded from the Monday slump, aided by positive global cues and short covering.