US crude futures turned negative for the first time in history following a collapse in oil demand as coronavirus pandemic derails the global economy. A rapidly rising number of COVID-19 infections in India and the resultant deaths also put pressure on bourses.
At the closing bell, the BSE S&P Sensex was down by 1,011 points or 3.2 per cent at 30,637 while the Nifty 50 edged lower by 280 points or 3.03 per cent at 8,981.
Except for Nifty pharma, all sectoral indices at the National Stock Exchange were in the red with Nifty private bank down by 5.8 per cent, financial service by 4.6 per cent, auto by 5.3 per cent and metal by 5.1 per cent.
Among stocks, IndusInd Bank was the top loser after slipping by 12.2 per cent to Rs 400.75 per share. ICICI Bank and Axis Bank too lost by 8.7 per cent and 7.9 per cent respectively. Bajaj Finance closed 9 per cent lower at Rs 2,099 per unit.
Metal majors Hindalco dropped by 8 per cent at Rs 107.05 per share while Tata Steel lost by 7 per cent. Auto major Tata Motors lost by 7.4 per cent and Mahindra & Mahindra by 7.2 per cent.
However, those which gained were Dr Reddy, Hero MotoCorp and Britannia.
Meanwhile, Asia shares were in the negative zone after an overnight tumble at Wall Street with US crude futures turned negative for the first time in history. However, it bounced back into positive territory on Tuesday.
Japan's Nikkei fell by 1.97 per cent while Hong Kong's Hang Seng lost by 2.2 per cent and South Korea's Kospi slipped by 1 per cent.
( With inputs from ANI )