Reuters Market Eye - The BSE Sensex falls 1.7 percent and the broader Nifty is down 1.9 percent, heading towards their fourth consecutive session of declines.
Asian stocks slid and the dollar rose to a 4-1/2 year high after Fed Chairman Ben Bernanke's remarks sparked worries of a reduction in U.S. monetary stimulus and after data showed China's factory activity shrank for the first time in seven months in May.
Ranbaxy Laboratories Ltd slumps 8.87 percent after majority shareholder Daiichi Sankyo Co said it believes former shareholders of the Indian company hid information regarding U.S. regulatory probes.
Larsen & Toubro Ltd falls nearly 4 percent, adding to Wednesday's nearly 6 percent decline, after its January-March profit fell while its guidance disappointed investors.
State Bank of India is down 4.18 percent ahead of its March-quarter earnings later in the day.
(Reporting by Abhishek Vishnoi)