Disappointing macro-economic data, coupled with a massive plunge in Japanese indices and a weak rupee subdued Indian equity markets on Tuesday.
This dragged a barometer index of the Indian equity markets to provisionally close the day's trade down by 266 points.
Initially, both the bellwether indices of the Indian equity markets opened on a negative note following Monday's falls in domestic markets and US stocks.
Sentiments were subdued by a sharp plunge in Japanese indices during the early trade on Tuesday.
Further, investors were seen disappointed over the third quarter (Q3) earnings results of corporate India, as well as a fall in the country's Q3 GDP (gross domestic product) numbers.
In addition, a weak rupee unnerved investors. The Indian rupee again breached the level of 68 to a US dollar.
"Indian rupee had opened weaker on the back of carnage across Asian markets, followed by risk-off sentiments from the US markets overnight," Anindya Banerjee, associate vice president for currency derivatives with Kotak Securities, told IANS.
"It opened around 68.15 levels on spot and it weakened towards 68.25/26 levels before seeing export hedging and RBI selling, cushioning it. Global market sentiment would remain the driving force."
Even weak crude oil prices which stood below $30 per barrel of 159 litres levels dented sentiments.
Furthermore, absence of any positive triggers and investors' doubts over the government's ability to perk up investments dragged markets lower.
Consequently, the barometer 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) receded by 266 points or 1.10 percent.
Similarly, the wider 50-scrip Nifty of the National Stock Exchange (NSE) ended the day's trade in the negative territory. It was lower by 89.05 points, or 1.21 percent, at 7,298.20 points.
The S&P BSE Sensex, which opened at 24,076.85 points, provisionally closed at 24,020.98 points (3.30 p.m.) -- down 266.44 points or 1.10 percent from the previous day's close at 24,287.42 points.
It touched a high of 24,111.19 points and a low of 23,919.47 points during the intra-day trade.
The S&P BSE market breadth favoured the bears -- with 1,749 declines and 848 advances.
"Absence of any positive trigger and concerns over global growth cascaded into the sharp plunge in Indian markets," Anand James, co-head, technical research desk with Geojit BNP Paribas Financial Services, told IANS.
Vaibhav Agarwal, vice president and research head at Angel Broking, elaborated that markets corrected sharply on the back of continued weakness in global markets.
"US markets saw a sell off yesterday led by a fall in crude prices on the back of global growth concerns," Agarwal explained.
Nitasha Shankar, vice president for research with YES Securities, said that IT stocks continue to bleed with sharp cuts, following sell off in the Nasdaq index.
