Heightened tensions between Russia and Ukraine, as well as persistent selling by FIIs led to India's key indices -- S&P BSE Sensex and NSE Nifty50 -- plunging on Tuesday.
High crude oil prices along with subdued global indices added weight to the downtrend.
The FIIs were net sellers on BSE, NSE and MSEI in the capital market segment on Monday. They sold Rs 3,245.52 crore worth of equities.
On Monday, they net sold Rs 2,261.90 crore worth of equities, while on last Friday they had pumped-out Rs 2,529.96 crore.
Globally, investors panicked at the prospects of an armed conflict between Russia and Ukraine after Russian President Vladimir Putin ordered the deployment of troops into two separatist-held areas within Ukraine.
This act led to a slide in global stocks' value while it catapulted prices of commodities, including crude oil and gold.
In Asia, equities slid for a third day due to escalating tensions over Ukraine and fresh regulatory scrutiny on China's tech sector.
Similarly, European stock markets tumbled.
On the domestic front, volumes on the NSE were higher than that on the previous two days.
All sectoral indices traded in the red led by realty, metals, and telecom. Only the Power index closed in the green.
The Sensex ended at 57,300.68 points, down 382.91 points, or 0.66 per cent, from the previous close.
Nifty closed at 17,092.20 points, down 114.45 points, or 0.67 per cent.
"Nifty continues dropping everyday and then, recovering part of the losses by the end of the day," said Deepak Jasani, Head of Retail Research, HDFC Securities.
"Advance decline ratio continues to be heavily in the negative. The 16809-16836 band continues to provide support on falls while 17267 could offer resistance."
Vinod Nair, Head of Research at Geojit Financial Services, said: "Escalation in Russia-Ukraine issue and a sharp surge in oil prices forced global markets to plunge sharply. Indian equities opened with heavy losses tracking overnight fall in the global market and its adverse spill over to commodity prices."
"However, the domestic market managed to trim down its losses during the late session. Continued offload by FIIs has increased volatility while DIIs are adding position."
Source : IANS