The Sensex fell as much as 733 points from day’s highest level and Nifty 50 index dropped below its important psychological level of 17,450 after hitting an intraday high of 17,639.
Tega Industries soared 68 per cent in its market debut.
Eight of 15 sector gauges compiled by the National Stock Exchange were trading lower led by the Nifty Media index’s 1.4 per cent fall.
Bajaj Finance was top Nifty loser, the stock fell 2.7 per cent to Rs 7,252.