The benchmark BSE Sensex extended losses for a second straight day and cracked below 24,000-mark by tumbling almost 374 points in early deals on sustained capital outflows by foreign funds and selling by retail investors.
There were no surprises on the growth front as a government data yesterday showed that Indian economy grew 7.3 per cent in October-December quarter of 2015-16.
Deprecating rupee against the dollar also influenced the sentiment.
The 30-share index plunged by 373.95 points or 1.53 per cent to 23,919.47. The gauge had lost 329.55 points in the previous session.
In a similar fashion, the NSE Nifty fell below 7,300-mark by losing 106.55 points or 1.44 per cent to 7,280.55.
All sectoral indices led by IT, teck, bank and metal trading in negative zone with fall up to 3.02 per cent.
Brokers said sentiment remained weak in the absence of any positive trigger amid sustained capital outflows by foreign funds.
Besides, there was a weak trend in other Asian markets following overnight losses in the US following as oil prices tanked again on fears of a deepening economic slowdown.
In the Asian region, Japan’s Nikkei plunged 5.40 per cent in early trade, while China’s Shanghai Composite index and Hong Kong’s Hang Seng remained closed for a public holiday.
The Dow Jones Industrial Average ended 1.10 per cent lower in yesterday’s trade.