The BSE Sensex fell below the 34,000-mark by plunging about 1,275 points or 3.6 percent in opening trade on Tuesday due to across-the-board losses.
The 30-share index fell by 1,274.35 points, or 3.66 percent, to 33,482.81 with all sectoral indices led by realty, consumer durables, metal and banking tradings in the negative zone.
Also, the broader NSE Nifty cracked below 10,300-mark by falling 390.25 points, or 3.65 percent to 10,276.30.
The market witnessed sharp losses at other Asian markets after a record-breaking loss on Wall Street after investors fret over rising US borrowing costs, brokers said.
The US Dow suffered its deepest fall in history, erasing all of its 2018 gains, while the S&P 500 took a beating to sit down for the year yesterday.
In domestic markets, caution ahead of RBI monetary policy meeting, which begins later in the day and the rupee depreciating by 29 paise to 64.36 against the dollar too dampened the sentiment, brokers said.
Foreign institutional investors sold equities worth Rs 1,263.57 crore in yesterday’s trade, as per provisional data.
The laggards include Tata Motors, Yes Bank, Axis Bank, SBI, Asian Paint, Tata Steel, Adani Ports, ICICI Bank, IndusInd Bank, HDFC Bank, Maruti Suzuki, L&T, and Hero MotoCorp, plunged by up to 7.55 percent.