The BSE Sensex fell over 300 points on Wednesday as a free falling rupee flared fears of heightening foreign outflows.
The 30-share benchmark index ended 1.86 percent or 340.13 points lower at 17,905.91 with 25 of its components closing in the red.
The broader 50-share National Stock Exchange (NSE) Nifty index ended 1.83 percent or 98.90 points lower at 5,302.55 on Wednesday.
A fast recession of confidence in the Indian economy, underscored by the plunge of the rupee to a life time low of 64.5450 to the dollar struck shares.
Meanwhile in the New Delhi bullion market, gold fell further by Rs 235 to Rs 31,125 per 10 grams while silver dropped by Rs 455 to Rs 50,155 per kg.