Nifty shed more than 1 per cent, or 121.90 points, to settle at 10,454.95 dragged mainly by banking and financials, media, auto, IT, FMCG and pharma sectors. While, Metal and realty sectors bucked trend.
Market sentiment were negative amid weakness in European and Asian stocks after a rout on Wall Street overnight amid rising interest rates, while lingering concerns over inflation at home also weighed.
Overseas, Asian indexes ended sharply lower, following negative lead from Wall Street. Japan's Nikkei, China's Shanghai Composite and Hong Kong's Hang Seng slipped 2-4 per cent.
European markets - France CAC, Germany DAX and Britain FTSE were trading lower by 0.2-0.5 per cent.
The Nifty declined 121.90 points or 1.15 per cent to end at 10,454.95, its lowest closing level since 3 Jan 2018, and moved in a range of 10,480.20 and 10,398.20.
It saw an intra-day movement of about 82.00 points.
The broader markets outperformed benchmarks, with the Nifty Midcap and Smallcap rose 0.23 per cent and 0.18 per cent, respectively.
On the sectoral front, Private Bank fell by 1.81 per cent, followed by finance service 1.78 per cent, Bank 1.76 per cent, PSU Bank 1.21 per cent, Auto 0.96 per cent, Media 0.95 per cent, IT 0.76 per cent, FMCG 0.46 per cent and Pharma 0.43 per cent. While, metal and realty rose by 1.27 per cent and 0.35 percent, respectively.
Index gainers were HCl Tech, Cipla, Tata Steel, Lupin, Dr Reddy, AsianPaint, Vedl, HindUnilever and Powergrid.
Major losers were Yes Bank, Infosys, HDFC, TechM, SBIN, IbulHsgFin, Infratel and ICICI Bank.
The market breadth, indicating its overall health, was in favour of losers. On the NSE, 849 stocks advanced, 933 declined and 73 remained unchanged.
Total securities that hit their price bands were 258.
Turnover in the cash segment fell to Rs 31,582.68 crore from Rs 34,882.63 crore yesterday.
A total of 15,755.69 lakh shares changed hands in 11,468,061 trades. The market capitalisation of listed firms on the NSE stood at Rs 1,45,56,659.34 crore.