The markets on Monday plummeted with the benchmark Sensex dropping over 900 points, the biggest fall in the last three weeks, to close below 17K level at 16,677.88 points and wider Nifty losing over 270 points to end below 5,000 level.
Analysts said markets took a hit on deepening concerns that credit losses in the US might increase.
The 30-share index on the Bombay Stock Exchange touched an intraday high and low of 17,227.56 and 16,634.63 and points respectively. The BSE barometer finally settled the day at 16,677.88 points, a loss of 900.84 points.
The National Stock Exchange's Nifty fell below 5,000-points level to close at 4,953, down 270.50 points, after touching the day's low of 4,936.05 and a high of 5,222.80 points.
Marketmen said the fall was a result of weakening global trend, as the US stocks markets plunged on February 29 after the National Association of Purchasing Management in Chicago said its business barometer contracted due to poor production and employment.
The major contributor to the fall were shares in metal, capital goods, oil and gas, bank, PSU realty, power, IT and auto.
As the selling pressure spilled over a wide-front, small cap stocks index tumbled by 389.78 points to 9,238.35 and midcap index by 315.54 points to 7,364.85.