Sensex, Nifty plunged on Monday morning as Asian markets opened in negative territory with Japan's Nikkei index declining around 5 per cent.
Tumbling blue chip stocks like ICICI Bank and Reliance Industries combined with foreign fund outflows also contributed to the bearish trend.
The BSE Sensex tanked as low as around 1.2 per cent to 84,591.58 before noon while Nifty plummeted around 1.1 per cent to 25,895.40.
Among the 30 stocks in Sensex basket, the major laggards were Tech Mahindra, Mahindra & Mahindra, ICICI Bank, Reliance Industries, Axis Bank and UltraTech Cement.
The stocks that withstood the bears included Tata Steel, JSW Steel, NTPC, Titan, Hindustan Unilever and Asian Paints.
Tokyo benchmark index, Nikkei 225, saw around 5 per cent dip on Monday while Seoul also was in the red.
On Friday, Sensex tanked 0.31 per cent to close at 85,571.85 while Nifty slumped 0.14 per cent to 26,178.95.