At 1:07 PM, the BSE Sensex was trading at 34,852, down 215 points, while the Nifty50 index was trading at 10,690, down 70 points.
Other losers were RIL, Dr Reddy's, Sun Pharma, ICICI Bank, Infosys, Maruti Suzuki, L&T, M&M, Hero MotoCorp, HDFC Bank, Adani Ports, NTPC, Wipro, Power Grid, Bajaj Auto and Kotak Bank, declining up to 2.70%.
The BSE Sensex rose by 200.95 points to close at an all-time high of 32,633.64 as investor optimism climbed following encouraging comments from the International Monetary Fund chief.More news: Driver opens fire on African migrants in Italian city of Macerata
Unabated buying by domestic institutional investors (DIIs) and wholesale price inflation (WPI) falling to 2.60 per cent in September, helped both the key indices to scale new highs.
The government has said that not the Budget, but global disturbances are to be blamed for the market crash.
"Indian markets are mirroring the freefall in world equities".
"We have turned completely from greed to fear and, hopefully, the fear should settle down without any systemic damage".
Investors also seemed cautious ahead of the RBI policy meet as they feel that repo rate might be increased amid inflation concerns, brokers said.More news: Tillerson warns Latin America to beware of China
Asian shares fell sharply on Tuesday after Wall Street suffered its biggest decline since 2011 as investors' faith in factors underpinning a bull run in markets began to crumble.
On Monday, the provisional data released by the stock exchanges showed that foreign portfolio investors (FPI) offloaded shares worth Rs 1,263.57 crore. In Japan, the Topix index slid 2.2 per cent while South Korea's Kospi Composite dropped 1.3 per cent and Australia's benchmark S&P/ASX 200 index fell 1.6 per cent.
The losses were led by index heavyweight Housing Development Finance Corp, which was trading 3 percent lower.
European shares too were in bad shape in their opening deals. London's FTSE too fell 1.73%.More news: Ex-Patriot Brandon Browner calls out Bill Belichick over Malcolm Butler benching
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