The benchmark indices settled over 1 per cent lower as the rupee hit a new record low of 72.72 in the afternoon trade.
The S&P BSE Sensex ended at 37,413, down 509 points, while the broader Nifty50 index settled at 11,287, down 151 points. In the broader markets, both S&P BSE MidCap and S&P BSE SmallCap ended 1.4 per cent lower.
Shares of fast moving consumer goods (FMCG) companies were under pressure with Nifty FMCG index hitting its six-week low, falling 8% so far in the current month on the National Stock Exchange (NSE) on valuation concerns in intra-day deals.
ITC, Godrej Consumer Products, Colgate Palmolive (India), Hindustan Unilever (HUL), Marico and Jubilant FoodWorks among the key FMCG stocks that lost up to 4% on the NSE.
Shares of Saksoft have rallied 14% to Rs 343 per share, extending their 6% gain on the BSE in the past two days, after the rating agency CARE Rating upgraded the long-term bank facilities of the company with a positive outlook. The stock of information technology (IT) software products firm was trading at its 52-week high level on the BSE.
Shares of Albert David hit a new high of Rs 830, up 10%, surging more than 100% in past five weeks in otherwise weak market. The stock of pharmaceutical company zoomed 103% from Rs 408 on August 7.
Albert David had reported a net profit of Rs 78.4 million in June quarter against a net loss of Rs 8.30 million during the same quarter last fiscal.