After gyrating 626 points, the 30-share BSE Sensex ended 470.41 points, or 1.29 per cent, lower at 36,093.47.
Similarly, the broader NSE Nifty plunged 135.85 points, or 1.25 per cent, to settle at 10,704.80. The previous closing low for Nifty was 10,604.35 on February 19, 2019.
Yes Bank was the biggest loser in the Sensex pack, plunging 15.52 per cent, after a Moody’s report said Altico default may be credit negative for banks given their significant exposure to the real estate sector. Tata Motors, HDFC Bank, Bharti Airtel and Asian Paints were the only gainers, rising up to 1.97 per cent.
Meanwhile, the US Federal Reserve slashed the policy rate by 25 basis points on Wednesday but dimmed hopes for further rate cuts as it took a cautious approach to further reductions in borrowing costs.
Elsewhere in Asia, Shanghai Composite Index, Nikkei and Kospi ended on a positive note, while Hang Seng settled in the red.
The Rupee depreciated 6 paise (intra-day) to trade at 71.30 per US dollar.