Markets in countries whose economic fortunes were closely linked to China's growth tumbled.
Bank of Baroda ended flat after sharp gains in the previous session.
Financials were the top losers while oil shares also declined amid weak crude oil prices.
Stocks of companies having operations and exports to Europe were the top losers.
The S&P BSE Sensex shed 286 points to close at 24,539 and the Nifty50 lost 100 points to end at 7,456.
IT exporters were the top gainers amid a weak rupee along with select index heavyweights.
Banks, real estate and metal scrips among the top losers.
Capital Goods shares ended mixed on the back of weak IIP numbers. L&T ended down 0.7% while BHEL ended with marginal gains.
Infosys, TCS, ICICI Bank and Sun Pharma among the top losers of the hour.
The S&P BSE Sensex slipped 305 points to end at 25,400 and the Nifty50 dropped 87 points at 7,783.
Positive cues from the global market front aided the rally.
Metal shares were the top gainers with Hindalco up over 5%.
The breakdown of talks between Greece and its international creditors raised fears of Greece's exit from the euro zone.
Index heavyweight RIL surged 3% to end above Rs 1,000 mark while IT majors were also the top gainers.
These images from across the globe tell that it is a crazy world out there!
Sensex in green, midcaps, smallcaps fail to show up; bluechips rule.
Markets shrugged off RBI's neutral stance on key policy rates.
S&P upgraded India's credit outlook to 'stable' from 'negative' earlier.
Nifty September F&O series ended lower after seven consecutive positive series with Metal Index falling the most
Markets crashed due to domestic worries; bluechip stocks tanked too.
Investors booked profit ahead of the outcome of the two-day US Fed policy meet which begins today.
HDFC, TCS, RIL, ITC and ICICI Bank dragged the Sensex by over 100 points.
Markets ended lower for the third straight day on Tuesday weighed down by profit taking in rate sensitives with bank shares leading the decline after hopes of rate cut by the central bank faded.
The 30-share Sensex ended down 245 points at 28,799 and the 50-share Nifty closed down 81 points at 8,750
Telecom shares rallied on hopes that they would hike tariffs after huge investments to acquire spectrum.
Sensex, Nifty put up a good show in closing trade.
The broader markets are trading inline with the larger peers with BSE Midcap and Smallcap indices up 1.5% each.
Sensex ended up 190 points at 25,519 and Nifty climbed 57 points to end at 7,626.
HDFC twins, Axis Bank, ICICI Bank and SBI from the financial space gained between 1-2.7%.
Decline in the rupee coupled with a slide in the crude oil prices have dented the sentiments.
The 30-share Sensex ended down 604 points at 28,845 and the 50-share Nifty ended down 181 points at 8,757. The Bank Nifty ended down 602 points at 19,146.
SBI, PNB, Bank of Baroda, Canara Bank, Dena Bank, Central Bank of India ended down 3%-12% each.
The broader markets ended mixed with mid-caps gaining 0.1 per cent and small-caps falling 0.1 per cent on the BSE.
The S&P BSE Sensex gained 115 points to end at 24,338 and the Nifty50 climbed 42 points to close at 7,404.
The broader markets ended negatively with mid-caps and small-caps shedding 0.5 per cent on the BSE.
Sun Pharma was the top gainer after SPARC received Sebi nod to raise up to Rs.250 crore through a rights issue
However, IT stocks fell on weak growth forecast by Gartner
The broader markets ended firm with mid-caps and small-caps gaining nearly 0.5 per cent on the BSE.
The FMCG index gained more than 1% on the back of stellar gains in ITC.
A steep decline in the Asian equities after crude oil fell to its lowest since September 2003 dented sentiments.