On Thursday, the Sensex plummeted 494.75 points to end the day at 81,006.61, while the Nifty fell 221.45 points to close at 24,749.85.
Among the top gainers included Infosys, Tech Mahindra, Power Grid, and SBI on the Nifty index. Bajaj Auto, Mahindra and Mahindra, Nestle India, and Hero Motocorp were among the top losers.
According to the exchange data, Foreign Institutional Investors (FIIs) sold equities amounting to Rs 3,435.94 crore and Domestic Institutional Investors (DIIs) purchased equities amounting to Rs 2,256.29 crore respectively on the previous trading day.
Vinod Nair, Head of Research, Geojit Financial Services, said, "The domestic market experienced significant losses driven by widespread selloffs across various sectors, notably auto, realty, consumer durables and finance. This downturn was attributed to weaker sales forecasts for the festive season, high NPAs and slow credit growth. Weak Q2 result is affecting the market sentiment. Conversely, the IT sector outperformed as a contrary bet and in-line Q2 results."