The BSE Sensex on Monday plunged 339 points to 28,119.40 in biggest single-session drop in nearly 8 weeks while the 50-stock Nifty was down 100 points to 8,438.25 in the closing trade.
Sensex opened in red today and further shed points in mid-session on selling mainly in IT sector amid lower Asian cues and foreign capital outflows.
Asian stocks were trading mostly lower in their early trade after disappointing data from Japan and China.
Key benchmark indices in Taiwan, Singapore, South Korea and Indonesia were off 0.01 to 0.6 per cent while indices in Japan, China and Hong Kong were up 0.08 to 1.42 per cent.
However, US stocks rose last Friday lifting the Dow and S&P 500 to a record high as investors embraced a stronger-than-forecast November payrolls report as backing the view that the economy can handle rate hikes by the Federal Reserve in 2015.