The Indian market lost ground on Tuesday again as the benchmark BSE Sensex plummeted 587 points to close at over one-year low of 25,696.44 on intensified selling triggered by weak domestic and global macroeconomic data.
Government data, on Monday, revealed domestic growth had slowed down to 7% in June quarter, down from 7.5% in the previous quarter. Meanwhile, a private survey claimed, on Tuesday, that Chinese factory output shrank to a three-year low.
Consequently, NSE Nifty also slipped below the 7,800-mark by tumbling 185.45 points or 2.33% at 7,785.85.
The market witnessed all-round heavy selling in banking, metal, realty, capital goods, PSU, auto, consumer durables, oil & gas, power, FMCG, healthcare and IT stocks.
The concerns of a Chinese economy and a possible rate hike from US Fed kept the markets around the globe under pressure.
Shanghai Composite dived 1.23% after China's statistics bureau said its Purchasing Managers' Index (PMI) of manufacturing activity came in at 49.7 last month, its lowest since August 2012.
The BSE 30-share gauge resumed with a downside gap and gradually moved southward to break 26,000-mark to a low of 25,579.88 before concluding at 25,696.44 -- logging a steep fall of 586.65 points or 2.23%.
"Sell-off was mainly triggered by the banks, especially PSU banks, on raising the concerns of pressure on their margins," said Gaurav Jain, director at Hem Securities.
Both the indices -- BSE Sensex and NSE Nifty -- are at their lowest since August 2014.
As many as 29 out of 30 Sensex scrips closed in the red, with the biggest loser Axis Bank falling by 5.24%, followed by Hindalco 5.18%.
Sun Pharma was the lone gainer, rising 0.34%.
In tandem with overall trends, the BSE small-cap and mid-cap indices lost 2.17 and 1.96% respectively.
Japan's Nikkei led an Asian share slump by falling 3.84%, while Hong Kong's Hang Seng plunged 2.24%.
European markets too sank in their opening trade.