The key Indian equity indices slumped on Thursday with the BSE Sensex closing over 320 points.
The decline in the market was caused by a selloff across the sectors, led by finance, banking and metal stocks.
A negative trend across the Asian and European markets also weighed on the domestic indices.
The BSE Sensex closed at 38,979.85, lower by 323 points or 0.82 per cent from the previous close of 39,302.85.
It had opened at 39,120.64 and touched a high of 39,234.81 and a low of 38,926.34 points.
The Nifty50 on the National Stock Exchange closed at 11,519.25, lower by 85.30 points or 0.74 per cent from its previous close.