The benchmark Sensex of the Bombay Stock Exchange (BSE) on Monday plunged to a 2-week low of 16,501.7, down 365 points, or 2.2%, as investors sold across sectors on weak industrial growth numbers and turmoil in global markets amid eurozone debt worries.
In the past two sessions, investors have lost over Rs 1.2 lakh crore on the BSE.
"Disappointing IIP numbers and speculations that Greece may be nearing a default adversely affected investor sentiments," said Alex Mathew, research head, Geojit BNP Paribas Financials.
IIP fell 3.3% in July against 8.8% in the previous month.
The Nifty of the National Stock Exchange also dropped to 4,947.0, down 112.6 points, or 2.2%.
Globally, most Asian markets closed in the red on renewed concerns that Greece might default on its debt repayments, escalating fears about a European debt crisis spreading further. Worries about France's rating being cut by Moody's also hit sentiments.
In all, 27 of the 30 scrips in the Sensex ended in the red. IT, capital goods and banking were among the major losers.