Benchmark indices remained on the back foot for the second straight session on Tuesday, with the Sensex and Nifty declining almost 1% each amid a sell-off in global markets.
Investors were also cautious ahead of the release of retail inflation and factory output data.
The 30-share BSE Sensex opened on a weak note and fell 508.62 points or 0.94% to end at 53,886.61. During the day, it dropped 570.26 points or 1.04% to 53,824.97.
The broader NSE Nifty declined 157.70 points or 0.97% to settle at 16,058.30.
Among the Sensex constituents, Infosys, Nestle India, HCL Technologies, Hindustan Unilever, M&M and Kotak Mahindra Bank were the major laggards.
NTPC, Bharti Airtel and Bajaj Finance emerged as the gainers.
In Asia, markets in Shanghai, Tokyo, Seoul and Hong Kong ended in the red.
Stock markets in Europe were also trading lower in mid-session deals. The U.S. markets had ended with losses on Monday.
Meanwhile, international oil benchmark Brent crude fell 2.37% to $104.6 per barrel.
Foreign institutional investors remained net sellers on Monday as they offloaded shares worth ₹170.51 crore, as per exchange data.
