Reuters Market Eye - The BSE Sensex falls around 1.5 percent and the broader Nifty falls 1.7 percent, after earlier marking their lowest intraday level in almost 1-1/2 months.
Banks lead the fall on continued uncertainty about how long would the RBI keep its liquidity tightening measures as the rupee hits a record low.
HDFC Bank falls 3.9 percent while ICICI Bank is down nearly 3 percent.
Bharat Heavy Electricals falls nearly 3 percent. The company's quarterly profit dropped 49 percent on sharply lower sales in its power and industry businesses in a slowing economy.
Crompton Greaves shares up 3 percent after April-June results.
(Reporting by Abhishek Vishnoi)