The S&P BSE Sensex tanked 894 points or 2.32 per cent to settle the day at 37,577. During the day, the index hit a low of 37,011 levels. Bajaj Auto emerged as the biggest gainer on the index while Tata Steel (down over 6.5 per cent) was the top loser.
On a weekly basis, Sensex dropped 1.8 per cent while Nifty lost 1.89 per cent.
Besides, other banking stocks, too, tumbled in the trade. The Nifty Bank index ended at 27,781, down over 1,000 points or 3.6 per cent.
In the broader market, the S&P BSE MidCap index declined 343.5 points or over 2 per cent to 14,227 levels while the S&P BSE SmallCap index ended at 13,330, down 261.5 points or around 2 per cent.
European shares opened sharply lower, with travel stocks bearing the brunt. The MSCI All-Country World Index, which tracks shares across 47 countries, was down 0.72 per cent.
Earlier in Asia, MSCI’s broadest index of Asia-Pacific shares outside Japan fell 2.1 per cent, while Japan’s Nikkei stock index sank 2.94 per cent. Australian shares were down 2.44 per cent. Shares in China fell 1.22 per cent, while stocks in Hong Kong, another city hard hit by the virus, fell 2.12 per cent.
Oil prices also fell due to worries that non-OPEC oil producers might not agree to output cuts even though global energy demand is weakening.
(With inputs from Reuters)