The Sensex and the Nifty plunged over one per cent at the closing session on Tuesday as investors remained cautious ahead of release of October CPI data and September IIP data later today.
Domestic sentiment was also dampened owing to weak rupee and weak European cues.
The 30-share BSE index Sensex was down 209.05 points (1.02 per cent) at 20,281.91 and the 50-share NSE index Nifty was down 60.75 points (1.00 per cent) at 6,018.15.
Except FMCG and healthcare, all other BSE sectoral indices ended in the red.
Among them, metal, power, auto and banking indices fell the most by 1.8 per cent, 1.75 per cent, 1.62 per cent and 1.62 per cent, respectively. FMCG index was up 0.56 per cent and healthcare 0.00 per cent.
ITC, M&M, Wipro and Sun Pharma were the only gainers on the BSE, while the top five losers were Tata Motors, SSLT, Tata Power, ICICI Bank and Tata Steel.
European stocks were down as investors weighed corporate earnings reports.
Stoxx 50 was down 9.61 points or 0.31 per cent at 3,043.22, FTSE 100 fell 20.42 points or 0.3 per cent at 6,707.95 and DAX shed 19.17 points or 0.21 per cent to 9,088.69.
Most Asian stocks were up, with the regional benchmark index poised to gain for a second day, before Chinese policy makers conclude a four-day meeting to chart out reforms for the world’s second-largest economy.
Japan's Nikkei surged 318.84 points or 2.23 per cent to 14,588.70, Hong Kong's Hang Sang fell 168.44 points or 0.73 per cent to 22,901.40 and Australia's S&P/ASX 200 was up 5.95 points or 0.11 per cent at 5,393.09.