The benchmark BSE Sensex plunged by 288 points to crack below the 25,000-mark after three months while the NSE Nifty slipped below the 7,600 mark in afternoon trade on sustained foreign fund outflows and selling by domestic investors.
Moreover, investors grew increasingly worried over a possible delay in the passage of the key GST bill amid weak global cues.
Sentiment was dampened on offloading of positions by cautious participants ahead of the key economic data, industrial production numbers for October, due later today.
The 30-share index sank 288.50 points or 1.14 per cent to 24,963.82 with all the sectoral indices led by realty, banking and capital goods trading in negative terrain with losses of up to 2.44 per cent.
The barometer gauge had gained 216.27 points in the previous session to snap six-session losing streak.
On similar lines, the NSE Nifty slipped below 7,600-mark by losing 96.55 points or 1.25 per cent at 7,586.75.
Besides, a weak trend in global markets as investors prepared for the outcome of next week's Fed policy meet which probably will hike interest rates for the first time in a decade accelerated selling activity here.
Stocks in the banking space such as ICICI Bank, Axis Bank, SBI and HDFC Bank were under selling pressure and were trading lower by up to 3.69 per cent, dragging down the key indicex from their key levels.
