The loss was the largest in almost 10 months.
Market across the globe turned cautious as geo-political issues returned following fresh barrage of barbs between US President Donald Trump and North Korean president Kim Jong-un, threatening destruction of North Korea and fresh Hyderogen bomb test in pacific by latter. "This was the largest fall for both the indices on an intra-day and overall closing basis since November 11, 2016", Deepak Jasani, Head - Retail Research, HDFC Securities told IANS. At 9.52 am, Sensex was down 225.96 points on 32,144.08 and Nifty was trading at 10,037.80, down 84.10 points. The Nifty was down 1.20 percent or 121.25 points at 9999 level.
Yesterday, the rupee plummeted by a whopping 54 paise to end at 64.81 a dollar, its weakest level in over two-and-half months after the US Federal Reserve left the door open for a rate hike in December. But later, the domestic currency managed to recover.
Finance Minister Arun Jaitley stimulus assurance to revive the slowdown-hit economy as growth slipped to a three-year low of 5.7 percent in the June quarter impacting the country's fiscal deficit target.
Weak Asian cues after China's sovereign rating was downgraded by agency on fears over its ballooning debt and sustained foreign fund outflows, too negatively impacted market sentiment.
Meanwhile, foreign portfolio investors (FPIs) andforeign institutional investors (FIIs) sold shares worth Rs 4,833.77 crore during the week, as per Sebi's record including the provisional figure of September 22.
The laggards were ICICI Bank, Tata Steel, Coal India, Axis Bank, Bajaj Auto, L&T, SBI, ONGC, Reliance Industries, Hero MotoCorp, TCS, Infosys and NTPC, falling by up to 2.09 per cent.
Sector-wise, all the 19 sub-indices of the BSE closed in the red, led by capital goods (down 603.52 points), metals (down 554.26 points) and banking (down 526.84 points) indices.
BSE realty melted the most by 4.29 percent.
Selling pressure rubbed off on broader markets, which dragged down small-cap and mid-cap indices by 2.93 per cent and 2.71 per cent, respectively.