Auto stocks, led by Tata Motors, dragged the markets lower Domestic equity benchmarks extended decline led by losses in Tata Motors, Vedanta, Larsen Toubro and Mahindra Mahindra.
The SP BSE Sensex fell as much as 389 points to 36,582 and the NSE Nifty 50 Index declined as much as 118 points to 10,952.
SP BSE Auto Index was the top sectoral loser, down 3.13 per cent dragged by sharp fall in Tata Motors after reported surprise loss in December quarter.
Metal and PSU banking stocks were also witnessing selling pressure.