The benchmark Sensex tumbled nearly 226 points to its lowest level in a month on the Bombay Stock Exchange today with funds selling amid worries over the drought in the country and weakening global trends.
Erasing initial moderate gains, the Sensex dropped to the days low of 14,684.45, before ending with a loss of 225.62 points at 14,809.64. It touched the days high of 15,096.94.
In a similar fashion, the wide-based National Stock Exchange index Nifty shuffled in a wide range of 4,477.55 to 4,353.45 before ending lower by 64.80 points at 4,394.10.
Selling pressure was up after Agriculture Minister Sharad Pawar said farm output may decline because of the weak monsoon.
The bearish trends were strengthened on reports of shares falling in China and the rest of Asia, and Europe on growing fears that the five-month rally on the bourses worldwide is waning because of doubts on the possibility of a global economic recovery.
European stocks fell one per cent in early trade, while U.S. stock futures were down 0.9 per cent. Japans Nikkei lost 0.79 per cent, Hong Kongs Heng Seng 1.73 per cent and Singapores Straits Times 1.75 per cent.
Marketmen said in Shanghai that shares slumped five per cent before settling at 4.3 per cent lower, taking their losses to around 20 per cent in just two weeks qualifying to be defined as a bear market.