The 30-share Sensex, which had lost 275 points in the previous day's trading, tumbled by another 334.32 points at 15,087.99, a level last seen on June 10.
The Nifty dropped by 78.15 points at 4,504.25, after touching the day's low of 4,488.95.
Brokers said selling pressure gathered momentum and major players booked profits ahead of tomorrow's inflation data which, they felt, might touch double digit.